OPINIONS

Locally Sourced: Lexus Celebrates 35 Years in Canada

Jul 4, 2025  · 4 min read

Summary
From Cambridge to Kamloops, Lexus has a long history of helping Canadians ride in comfort.

In 1990, Toyota entered the Canadian luxury car market with its new brand, Lexus. The LS 400 sedan made a massive splash with its impeccable quality and craftsmanship, winning the accolades of consumers and automotive media alike. Initial sales started with a couple thousand units by the end of 1991, growing to nearly 5,000 by 1998 and peaking at about 30,000 units annually today. After redefining the luxury sedan, Lexus didn't stop there – by the end of the 1990s, it had nearly single-handedly created the luxury SUV with the RX 300. In those first few years, Lexus put every European competitor on notice and forced them to play catch-up.

Made in Canada

In 2003, Toyota Motor Manufacturing Canada (TMMC) began producing the RX SUV in its Cambridge, Ont., plant. As the first Lexus to be manufactured outside of Japan, this signified Toyota’s recognition of the quality and capability of cars produced in our country. In 2022, production of the current-generation NX was added to the mix, and today, the plant continues to consistently win industry quality awards. 

“Lexus is the only luxury brand that assembles vehicles on Canadian soil,” Martin Gilbert, Director of Lexus Canada, proudly declared during a tour of the facility.

To celebrate 35 years in this country, we had the opportunity to take a tour of TMMC’s Lexus production line. We witnessed the grand effort put into crafting luxury vehicles worthy of the accolades. A team of workers in the plant constantly pored over details such as panel gaps and the smooth operation of moving parts, and the whole operation was very much like a well-oiled machine. With a philosophy of kaizen (which translates into continuous improvement in Japanese), Toyota and Lexus have fostered a culture of constant change in the name of optimizing both the manufacturing process and the quality of its products. 

Looking Back

Sampling several vintage Lexus vehicles from decades past — a 1991 LS 400, 1995 SC 400, 2002 IS 300, 2005 RX 330, and 2008 SC 430 — each represented a different flavour and era of Lexus history. Despite being over three decades old, the cabin of the original LS 400 sedan remains remarkably quiet, and the 4.0L V8 engine is incredibly smooth, even by 2025 standards. The 2002 IS 300 was a wonderfully engaging compact sports sedan, and the example we drove happened to be proudly owned by a Toyota Canada employee. The 2005 RX 330 was a unit produced at TMMC and may be one of the few automaker-owned showpieces with over 200,000 kilometres on the odometer.

Lexus also holds a place near and dear to my heart. Having had a pre-owned 2009 LS 460 a few years ago, I’ve witnessed the sedan’s steady evolution through the years. The LS is one of my favourite cars for its refinement and quality, but it also happens to be the car I brought my son home in when he was born. The LS and all other Lexus models have tight, consistent panel gaps and a high priority placed on the look and feel of every component a passenger sees and touches. Lexus has demonstrated that a premium experience can be achieved at a reasonable price without compromising long-term reliability.

Today: A Hybrid-Electric Juggernaut

Fast-forward to 2025: With 16 models to choose from, Lexus is a leader in electrification, with 60 per cent of sales being either a hybrid, plug-in hybrid, or battery electric vehicle. From the UX subcompact crossover to the sexy LC convertible, there’s a full range of electrified models in nearly every shape and size. Lexus' hybrid powertrain and strategy are unique — no other premium automaker makes hybrids like this.

Final Thoughts

Lexus Canada has spent the past three and a half decades pushing the boundaries of luxury car excellence in all areas, including manufacturing, design, and consumer expectations. Its best-selling models are produced right here at home, making a significant contribution to the country's economy. Even with the current uncertainty in international trade, Lexus and Toyota continue to commit to manufacturing cars locally, as evidenced by recent investments in expanding hybrid vehicle production capacity. Lexus is truly an automotive success story, and Canada has been along for the ride every step of the way. The following 35 years will usher in significant changes as electricity displaces fossil fuels, and we’re looking forward to being along for that ride, too.

Meet the Author

As a reader of AutoTrader since childhood, Jerry is a member of AJAC and has written hundreds of new car reviews over the years. With a technical background in both mechanical and electrical systems, he enjoys turning complex information into more digestible reading for both everyday car buyers and enthusiasts. He can often be found wrenching on or cruising about in his 1986 Toyota Celica Supra.