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.