Lexus leads luxury car market in Vietnam and expands EV production

Lexus has overtaken Mercedes-Benz to become the best-selling luxury car brand in Vietnam during the first seven months of 2026. According to registration data, Lexus recorded 1,247 registrations, surpassing Mercedes-Benz's 1,000 units. This shift marks the end of Mercedes-Benz's long-standing dominance in the Vietnamese luxury market, which has seen declining sales over the past two years.

Lexus's growth is driven largely by its hybrid models, particularly the RX SUV. Following tax incentives for hybrid vehicles under Decree 360/2025, the price of the Lexus RX has become more competitive. Despite having significantly fewer dealerships than German rivals like Mercedes-Benz and BMW, Lexus has demonstrated high sales efficiency.

In a separate strategic move, Lexus is expanding its electric vehicle (EV) portfolio by planning to produce a next-generation electric crossover at a new facility in Shanghai, China. This model will utilize gigacasting technology—a method of casting large aluminum components as a single unit—to reduce vehicle weight and extend driving range. This production in China represents a strategic shift for the brand as it seeks to regain competitiveness in the Chinese EV market.