The head of Toyota Motor's Lexus division has said he expects the sales of luxury vehicles to show strong growth over the next two years despite flagging demand in the automotive industry as a whole.

Denny Clements, the group vice president and general manager of the Lexus division, told the Detroit Press Automotive Association that he believed an ageing population and the lowering of prices would see American sales rise by as much as 24 per cent by 2005.

'Cars are a lot more affordable than they've ever been,' Mr Clements explained.

Clements argued that new vehicles, such as the RX 330 SUV, would help Lexus enjoy a period of strong sales, estimating that the vehicle would sell more than 75,000 a year.

However, this year Lexus's sales in the US are down four per cent through the first three months.