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New Chinese premium brands such as Denza and Zeekr have earned the respect of Lexus, which says it's "ultimately good for consumers to have competition".
Electric Cars
Lexus says it respects new competition from Chinese premium brands such as Denza and Zeekr, which have recently launched 'new energy vehicles' – comprising battery-electric and plug-in hybrid technologies – in Australia at sharp prices.
However, the Japanese company says it is "doubling down" on its ownership experience to ensure it can maintain the customer loyalty it has "enjoyed so far", following its launch in Australia 36 years ago as a disruptor to European luxury brands.
Speaking to Drive at the media launch of the 2026 RZ electric SUV – which has seen up to $42,000 cut from its list price – Lexus Australia chief executive Jack Hobbs said "it's ultimately good for consumers to have competition".
"We actually respect competition, and we think it's ultimately good for consumers to have competition," he said.
Australian new-car sales data show 3914 Lexus vehicles have been reported as sold year-to-date, ahead of China's Zeekr (2838) and Denza (1131), as well as the Genesis premium brand from Korea (464).
New competition from Chinese premium brands is primarily focused on the medium and large SUV segments, as well as people movers, where the electric Zeekr 7X (2698) has outsold the hybrid-dominated Lexus NX (1874).
Denza's B5 (729) and B8 (394) plug-in hybrid off-road large SUVs have also outsold the Lexus GX (292) and LX (231) so far this year, with the BYD luxury spin-off only arriving in Australia late last year.
The BYD-managed brand also recently launched its D9 fully electric people mover as an alternative to the $77,530-dearer Lexus LM petrol-electric hybrid, while the Z9 GT electric shooting brake will follow later this year.
Zeekr will launch its 8X and 9X full-size SUVs in Australia in the next 12 to 18 months as its first plug-in hybrid models, joining the all-electric Zeekr X small SUV, 7X medium SUV and 009 people mover.
"That said, we want to double down on our Lexus 'peace of mind promise'," Hobbs added. "We really want to make sure that it's not just a brand you buy, it's a brand you belong to.
"From the first handover of the keys, we want to have that journey with our customers."
Lexus's 'peace of mind promise' includes its five-year/unlimited-kilometre warranty, which is on par with traditional rivals such as BMW, Mercedes-Benz and Audi, as well as Zeekr and Genesis – while Denza offers the same six-year/150,000-kilometre warranty as its BYD parent.
Toyota's premium brand also offers three years of complimentary roadside assistance, its tiered Lexus Encore ownership program, and a parts distribution network shared with its parent company – something the brand is keen to highlight.
"We're doubling down on things like making sure our dealer staff are well-trained and the technicians are able to handle anything that comes in, right through to our parts distribution network, which is vast across Australia and able to give us good parts and service when it's needed," Hobbs said.
"We think if we do that, and are also moving more into a sort of lifestyle brand, that we'll be rewarded with the loyalty that we've enjoyed so far."
Lexus Australia has part distribution warehouses in Melbourne, Sydney, Brisbane, Perth and Darwin – shared with Toyota – which it claims forms part of "Australia's most extensive genuine parts distribution network".
Approximately 87 per cent of Lexus vehicles sold in Australia so far in 2026 have been hybrid, plug-in hybrid or battery-electric – but the brand says it won't remove any petrol- or diesel-only models where customer demand remains.
"That is the beauty of Lexus and having that luxury of choice and that multi-pathway approach is that ultimately consumers will dictate the pace of change and what powertrain they want and what suits them," Lexus Australia spokesperson Emily Fadeyev said.
"We're seeing the market evolve and we're seeing consumers evolve, but ultimately Lexus has that choice, and consumers are able to make that informed decision."
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Jordan is a motoring journalist based in Melbourne with a lifelong passion for cars. He has been surrounded by classic Fords and Holdens, brand-new cars, and everything in between from birth, with his parents’ owning an automotive workshop in regional Victoria. Jordan started writing about cars in 2021, and joined the Drive team in 2024.
