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Lexus Increasing Dependence On Hybrids

But luxury maker struggling with flaws HS250h.

by on Dec.09, 2010

Lexus is betting heavily on hybrids, like the CT200h, despite some setbacks.

As it races to the wire, Lexus is once again aiming to end the year as the nation’s leading luxury nameplate – and its heavy dependence on hybrid-electric technology is one reason it would get there.

The first high-line brand to introduce a hybrid-electric vehicle, Lexus now has more HEVs in its line-up than any other luxury brand – and the list is about to grow, with the launch of the new CT200h. (Click Here for a review of the 2011 Lexus CT200h.)

But not all of the Toyota subsidiary’s hybrids have performed equally well.  Insiders lament the lackluster performance of the first dedicated Lexus model, the HS250h, while the LS600h, the most expensive model in the Lexus line-up – other than the limited-edition LF-A supercar – has been lagging initial expectations.

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Nonetheless, Lexus manager Brian Bolain says the trendline is moving in the right direction, and that hybrid sales are expected to surge from around 30,000 to 42,000 with the addition of the 2011 CT200h.  Measured in terms of share, the technology accounts for about 13% of the brand’s overall volume, with Lexus aiming to boost that to at least 18%.

“We’re looking at the CT200h being a game-changing opportunity for us,” said Bolain, during a recent preview of the new hybrid.