Lexus Aims to Bridge Price, Age Gap with UX Crossover

Today’s young car buyers, who could one day become loyal brand customers, are likely to be found in condos, apartment buildings, and other neighborhoods where space is tight. This is the assumption that Lexus wants to build upon, that's why it is marketing its ultra-maneuverable, entry-level crossover, the Urban Explorer (UX), to this particular demographic.

"We are trying to get at an audience that's probably about 35 years old, men and women by the way, and I suppose you could throw in the millennial group as well," Lexus General Manager Jeff Bracken told interviewers during the New York auto show. "And that would be a huge win for us because, clearly, with our current average buyer with all our vehicles at 60, we have a ways to go," he added.

The diminutive Lexus crossover boasts a 17.1 turning radius, the best in its segment. That means it can do a U-turn in very tight spaces, and in ways that no other compact luxury crossover can.

As Lexus is a luxury car brand, their audience has been more of 40-plus somethings with plenty of money to throw around. So before it can bridge the age gap and market to a younger crowd, it must first address the price gap between its more affordable cars and the disposable income of younger buyers. The move is intended to help Lexus compete with its German rivals, who already have entry levels costing $30,000 and lower.

In the past, Lexus has mentioned that $30,000 is too low for luxury, but it seems that now it is whistling another tune. Toyota's luxury brand hasn't set prices for the UX, but Bracken has expressed the company's intent to have a competitive entry in a fast-growing segment. The UX will have gasoline and hybrid versions.