Toyota’s journey into the luxury car market through the lens of Kaizen principles, emphasizing the brand’s relentless pursuit of excellence. It begins by delving into the origins of Kaizen, which embodies continuous improvement, collaboration, discipline, morale, feedback loops, and innovation. Toyota’s integration of Kaizen into its manufacturing processes enabled it to master Henry Ford’s assembly line concept, initially learned from Ford Motors, and later assisted General Motors in revamping its manufacturing plant.

In the 1980s, Toyota faced the challenge of entering the luxury car segment dominated by European brands like Mercedes-Benz. To overcome this perception and establish itself as a luxury car manufacturer, Toyota initiated the Lexus project. Led by chairman Eiji Toyoda, Toyota aimed to build the world’s best car, resulting in the development of the Lexus LS 400. The creation of the Lexus brand represented a strategic move to redefine Toyota’s image and penetrate the premium luxury market in Europe and the US.

The Lexus LS 400, equipped with innovative features and superior craftsmanship, surpassed expectations and garnered attention from the automotive industry. Despite mixed reviews initially, the LS 400’s engineering excellence and performance compelled European luxury carmakers to acknowledge Toyota’s achievement. Through relentless pursuit of improvement and adherence to Kaizen principles, Toyota successfully disrupted the luxury car market and paved the way for future innovations.

Source: https://www.spoclearn.com/blog/how-toyota-entered-the-luxury-car-market-with-kaizen-principles/