Since it was created in the late 1980s, Toyota's (NYSE:TM) Lexus luxury brand has been a solid contender – not just here in the U.S., but in Japan and Europe as well. Strong products and well thought out marketing – and great customer service – have given Lexus and its cars a loyal following.

Toyota had hoped to repeat that success in China, where the luxury-car market is booming – and expected to grow rapidly for years to come. But as Motley Fool contributor John Rosevear explains in this video, it's looking like Lexus is rapidly falling behind in China – and that's not good news for Toyota.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.