Lexus confident of premium position

WITH an increasing number of mainstream manufacturers making the push into the premium market, the space once occupied almost exclusively by Audi, BMW, Lexus and Mercedes-Benz seems to be facing challenges it never before had to contend with.

As price parity between upper mainstream models and lower premium models is achieved – and technology, comfort and safety factors matched – the ability for premium manufactures to attract new buyers to their brand is, from the outside at least, seen as more difficult than ever.

Speaking to GoAuto at the launch of the new Lexus RX SUV in Melbourne last week, Lexus Australia chief executive John Pappas said the Japanese luxury marque will continue to offer experiences and service that will differentiate it from new-to-premium brands.

“It is an interesting situation. Other brands are getting better at what they do, which is great, because it offers consumers choice, and more choice is a great thing,” he said.

“Lexus is no different in that. When we look at our refinement and unparalleled quality, they are things we too continue to evolve. So, even though these other brands are moving into the premium space, we’re continually evolving as well.

“And we are not going to remain still … Our experience and the way Lexus can personalise luxury for our customers, evolve our technology … all those things will continue to accelerate. When I look forward and see where Lexus is heading, I can’t begin to tell you how truly excited I am.

“The new product portfolio, powertrains, technology, safety … the level at which our parent company is investing in these areas, as well as in electrification and service, is mind blowing. And it’s just part of how we will continue being leaders in the luxury experience.”

Mr Pappas explained that Lexus will move not only to ensure the quality of its vehicles and the level of technology offered to its buyers remains at the forefront of customer expectations, but that the company is working to ensure the ownership experience can continue to outpace its rivals, particularly those from a mass-market background.

“Lexus is in the ‘experience economy’. It’s not all about the product, it’s the entire experience; and that’s end to end. It’s how we treat people. It’s how we continue to provide experiences that make our customers' lives better. Lexus has always been evolving to make luxury personal for people,” he detailed.

“And we will continue to evolve so that we have an unbeatable program in Encore. We want to keep developing that program for our customers – both existing and new – which is something I don’t think other brands will be able to offer.”

Although on-paper many of Lexus’ service levels appear to be closely matched by some rivals offering comparable warranty, maintenance schedules and aftersales assistance, Mr Pappas said parts of the brand’s Encore suite of customer experiences was something few have emulated successfully.

He said that although the Encore program would continue to offer experiences commensurate with the value of the vehicle purchased, certain services would be maintained irrespective of price, even as the brand itself continues to mature.

“It really depends on what car you’re buying, but ultimately, we’re trying to tailor the type of experience we offer people because certain buyers expect different things – and that will continue to change as we move further into the electrification era.

“We want to make sure that people coming into the Lexus family have a great experience.”