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Originally Posted by GreenAndBlue
Toyota has to be *very* careful in their price differential between Toyota and Lexus Hybrids, however, especially if the technology becomes as big as a lot of people are thinking it's going to get. Because if it gets *big*, and Toy's selling it in most of the comparable lines (ES / Camry, RX / Highlander, etc), the consumer mindset for the most part will be "I want a hybrid, but at the cheapest price - I'm not going to pay 2.x times as much to get hybrid Lexus - I'll have 90% of the Lexus at 70% of the cost". That's exactly why I keep buying Accords over TLs (no hybrid TL this time, either).
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Lexus and Toyota occupy a completely different market space. Nobody considers both when making purchases. Modest-income people don't bother looking at Lexus because it is always too expensive. Likewise, Toyota does not offer the amenities that the rich demand in their vehicles.
So they are completely different market segments. Thus, Lexus is trying to get the people who would not even consider a Toyota but would like a Hybrid vehicle.