A road test is the best way to convince sceptics the new 2024 Lexus LBX compact SUV is worth around $20,000 more than its technical close relation, the Toyota Yaris Cross.
That’s the advice from Lexus Australia chief executive John Pappas, when asked why prospective buyers should bother stumping up the extra dollars for the LBX.
“Go and drive a Yaris Cross and then drive that [LBX],” he said.
“It’s a different feel, it’s a different drive and it’s a great little vehicle for that price package.”
The Yaris Cross, which has been around since 2020, and the new LBX share the same basic Toyota measurements, fundamental TNGA-B platform and petrol-electric hybrid powertrain.
While that makes the LBX sound like a badge-engineering effort, Lexus has undoubtedly put differentiation work into its first B-segment SUV.
That includes a bump in power output from 85kW to 100kW.
The two cars have separate exterior and interior designs and the LBX has higher-grade trim materials and equipment including a Mark Levinson stereo in the Sports Luxury specification.
“When you look at what’s in that car spec-wise and with all the Lexus design signature, driving capabilities, it’s actually a very good value proposition,” argued Pappas.
He also more widely defended the concept of compact luxury, as the LBX is the smallest Lexus yet.
“People think big is luxury and small is inferior but that is not true. LBX inherits the Lexus DNA, making it a small car that is truly premium and in every respect an authentic Lexus product,” he insisted.
“There has been no compromise.”
Prices start at $47,550 for the entry-level LBX Luxury model, climb to $52,990 for the front-wheel drive Luxury Sports and top out at $56,990 for the Sports Luxury all-wheel drive. (All prices are before on-road costs.)
The LBX is also the first Lexus to be available with a full-service lease and is introduced at the same time as Toyota’s luxury brand expands its Encore ownership program to all owners.
By comparison, the Yaris Cross – which has just been pushed up in price and equipment – starts at $30,900 and tops out at $39,880 plus on-road costs.
On the flipside, the LBX starts at a lower price than logical rivals including the BMW X1, Mercedes-Benz GLA, Audi Q2 and Alfa Romeo Tonale, although the Lexus is smaller than most of them.
It’s also clearly the cheapest Lexus you can buy now the petrol UX 200 has been axed.
While supply will be “a bit tight”, Lexus is forecasting 1500 LBX sales in its first 12 months on sale, and has already taken 300 orders.
The forecast split is 20 per cent sales for the Luxury, 30 per cent for the Sports Luxury 2WD and 40 per cent for the Sports Luxury AWD.
“This car for us at Lexus is going to be a game changer,” predicted Pappas.
“As a luxury urban SUV the LBX is the first car in its class to combine hybrid efficiency with big car luxury.
“It’s a radical model that takes us into new territory, with the potential to accelerate sales and capture the hearts and minds of new customers.”
Lexus is coming off a record 15,192 sales in 2023 and with the launch of the LBX and GX SUV in June it is forecasting another record.
Meanwhile, the LBX line-up appears set to grow with Pappas making it clear the LBX Morizo RR was wanted in Australia if it made the transition from concept to production.