RX to turn sales tide

Lexus Australia's top-selling model is back -- and not before time. The new RX350 (more here) goes on sale officially next week and will provide a welcome sales boost, says Lexus Australia chief, John Roca.

The midsized luxury SUV has grown physically in its new generation guise and Lexus is looking for it to attract new buyers to the nameplate and brand. According to Roca, the marque is also looking for strong interest from the owners of the 15,000-strong 'carpark' of previous generation RX models.

Roca says Lexus' aim to sell 130 RX350 per month is "very conservative" but cautions that conservative is the way the brand intends to play the remainder of 2009.

"IS F was the first car we trimmed. We thought we might sell up to 25 [per month], ordered at 10 cars per month and we're retailing 12-14," he explained.

"We took a conscious decision to wind back our expectations in the middle of last year. We took our pain in 2008, worked hard to reduce inventory and put together a plan that is achievable for 2009," Roca told the Carsales Network.

That plan centres on a strong performance from the new SUV which in times past has contributed up to 30 per cent of Lexus' volume.

"2009 without RX would have been a very tough year," the local Lexus boss opined.

According to Roca, aggressive zero per cent financing plans (and dealer incentives for cash buyers) have helped generate strong runout demand for the second-generation RX – both in 350 petrol and 400h hybrid variants. He says less than one month's 350 stock is in dealers and the remaining hybrid stock will be sold out before the replacement model arrives around August.

The company is already holding strong orders for the new RX, he says.

"We'll be running at around two months back order at our projected 130 sales per month volume," he said.

"In the current market we're comfortable with that."

He notes too the strong past following of the RX will provide opportunity.

"We have a carpark of around 15,000 RX owners out there. That sort of audience is not something we've been able to tap with any other Lexus model."

Roca also says forward orders for the new IS250 CC are building with enquiry already strong.

But the Lexus chief says this year is not the time to get involved in a battle to defend the marque's position in prestige volume pecking order.

"Whether you're the second, third or fourth biggest prestige brand means nothing if you're not operating profitably," Roca opined.