Luxury Car Showdown: BMW Outpaces Lexus with 3,274 Sales Last Quarter – Who Will Win the Race?

The Battle for the Top Spot in the U.S. Luxury Market: BMW vs Lexus

As the first quarter of 2026 comes to a close, BMW and Lexus find themselves in a tight race for dominance in the U.S. luxury market, with only three thousand cars separating them. BMW delivered 84,231 vehicles, a 3.9 percent decrease from the previous year, while Lexus posted 80,952 units, down 2.5 percent. Despite both brands experiencing a decline, the reasons behind their sales drops paint very different pictures of their future trajectories.

BMW’s SUVs Lead the Charge

BMW’s SUV lineup has been the saving grace for the brand, with the X3 experiencing a remarkable 58 percent surge and the X5 seeing a 7.1 percent increase, totaling 18,680 units. This strong performance in the SUV segment has offset the 17.3 percent decline in BMW’s car lineup. Notably, the 3 Series saw a 10.2 percent uptick in sales, driven in part by anticipation for the upcoming generational redesign in 2027. The 8 Series, nearing the end of its production run, outperformed all quarters of 2025 combined as last-minute buyers rushed to make a purchase. However, electrified vehicle sales have taken a hit, dropping by 50 percent following the removal of federal EV incentives by the Trump administration.

Lexus Charts a Different Course

Lexus is pursuing a different strategy, with the ES sedan, traditionally the brand’s volume leader, experiencing a significant decline of two-thirds to just 3,044 units. The newly redesigned 2026 ES has begun rolling out in electric form, with the hybrid variant set to follow in late June. On the other hand, the RZ electric crossover has seen a threefold increase in sales to 4,456 units, setting a new record. The NX Plug-in Hybrid also achieved a record high of 3,229 units sold. In total, electrified vehicle deliveries accounted for nearly 43 percent of all Lexus sales, reaching 34,907 units.

The next three months will be crucial for both BMW and Lexus. BMW’s challenge lies in maintaining momentum in the SUV segment as it transitions its car lineup and navigates the decline in electrified vehicle sales without federal support. For Lexus, the focus is on whether the new ES, launching in two phases with an electric version first and hybrid later, can reclaim its historical sales volume and leverage the brand’s reputation in electrification to attract new customers.