Buyers ditch European sedans for Lexus UX

The Lexus UX compact SUV will spur the Japanese luxury brand to a record-breaking sales year in 2019.

Lexus Australia CEO, Scott Thompson, told journalists at the launch of the revised RC F in the US this week that Toyota’s premium brand is expected to top 10,000 annual sales in Australia this year for the first time since it set up shop here in 1989.

He said the sales spike was due largely to the Lexus UX, which was launched locally in late 2018 with a sub-$45,000 starting price and is attracting large numbers of buyers from European sedans, the majority of which are female.

“We’re on track with record sales in the first quarter of this year, and will definitely achieve an all-time record for Lexus in 2019,” said Thompson.

“Sixty per cent of buyers last year were new to the brand. It’s an amazing indication that we’re succeeding in reaching new customers, and fostering strong loyalty.

“For many buyers, the UX is not only their first Lexus, but their first luxury vehicle. In fact, three-quarters of UX customers are new to our brand, the largest inflow coming from European passenger cars.

“These recent arrivals take us another step forward on the way to selling 10,000 Lexus vehicles in Australia [in 2019], a level that will represent an increase of over 40 per cent in just five years for the Lexus brand.”

The news comes as Lexus prepares to launch its RC F range in Australia next month. It will be joined by Lexus’ first-ever RC F Track Edition -- an important part of a multifaceted brand strategy that Lexus says will be unveiled in full at this year’s Tokyo motor show.

“The updated RC F – including the Track Edition – joins other important new model launches for Lexus over the last 12 months, including the new edition, all-hybrid ES, and of course the new compact crossover UX,” Thompson said.

“You can also expect some pretty big news on our alternative-powered range at the Tokyo [motor] show. We’ll have more to say on hybrid, electrification and hydrogen then – and maybe some more information on the F Sport pillar,” he intimated.

Thompson said that the demand for electrified vehicles – particularly in the UX range – had come as a surprise, and that Lexus Australia is seeking to adjust its production allocation to meet demand. He said female buyers were also principally driving demand for its hybrid-powered SUVs.

“Encouragingly, two-thirds of [UX] customers are female, and we’ve been overwhelmed with the demand for hybrid, with order-taking running at around 60 per cent for the self-charging electric-powered system.

“That’s much stronger than we expected, and [it] would probably be even higher if we had the stock. We’re moving rapidly to adjust our supply,” he added.

Lexus has yet to break the five-figure sales mark locally. Its previous record of 9028 sales was set back in 2016. The Japanese prestige car-maker sold 8800 units in 2017 and 8819 vehicles last year (2018).

Lexus failed to break previous records in 2018 despite the introduction of new several models. It fell well behind German competitors Audi (19,416), BMW (23,055) and Mercedes-Benz (32,201), but did outsell British marque Jaguar by more than 6000 units (2679) and fellow Japanese prestige brand Infiniti by an impressive 8170 units (649).

Visit carsales again on April 26 to read our first drive report on the Lexus RC F and RC F Track Edition.