LEXUS is adding a second dealership in Perth which, in the brand’s 35th year in Australia, will become its 30th dealership. The move to expand in Perth follows a strong 2024 in which the brand saw hybrids accounting for more than 60 per cent of sales.

‘Lexus of Perth – Melville’ will be the sister dealership for ‘Lexus of Perth – Osborne Park’ and ‘Lexus of Tasmania’, headed by long-standing Lexus dealer principal and managing director David Jeary. Melville is a southern Perth suburb while Lexus of Perth is in the northern suburb of Osborne Park.

Lexus of Perth – Melville

The 2024 sales figure of 13,642 units for the luxury brand was technically a record given the 2023 figure (15,192) was inflated because of the fulfilment of delayed orders carrying over from the previous year.

As the sales continue to rise, Lexus Australia CEO John Pappas said the brand was planning to expand its dealership numbers and would prioritise existing dealers to open new showrooms.However, in spite of opening the books to new Lexus centres around Australia, Mr Pappas said the growth would be carefully controlled to ensure customers always get the best of sales and service support.

He said the first new dealership was in Melville but that other dealerships either had completed or were undergoing refurbishment to reflect Lexus’ growing product range and customer base.

John Pappas

These include the Lexus dealerships in Parramatta – which is one of the brand’s biggest dealers and last year completed a major redevelopment – along with Brighton and Port Macquarie. Lexus of Blackburn in Victoria is in the planning stages of a redevelopment.

Mr Jeary, who as managing director opened WA’s first Lexus dealership – Lexus of Perth – in 2006, said customer demand led to the development of Melville.

“We have a lot of customers from south of the river and the idea for the Melville dealership started by looking to make owning a Lexus as convenient as possible,” he told GoAutoNews Premium.

“I think there’s a lot of customers south of the river who probably haven’t been to our brand because we haven’t had representation in their area. – David Jeary

“By bringing the brand to them there’s a lot of potential to increase our customers.”

“Melville will be a boutique dealership. I don’t want it to be too big and I want to retain that personal feel with customers.

David Jeary

“I think that the bigger you get, the harder it is to give customers a true luxury boutique experience.

“If I had expanded Osborne Park rather than look at opening a second outlet south of the river, I would have become a volume dealer operating from one site. We don’t want to be a volume dealer. We want to be a very boutique dealer that gives customers the best experience.

“Melville also gives some staff the opportunity to grow in the business and expand their horizons.”

Mr Jeary said he parallels the concept of Melville with that of Lexus of Tasmania which he opened three years ago. The dealership targets the luxury brand’s ideal customer, being in an art deco building on Elizabeth Street in Hobart’s cafe and restaurant strip.

It has its own restaurant, The Rox, that Gourmet Traveller lists as in the Top-5 in Tasmania and is booked out for months with patrons regularly coming from Melbourne and Sydney.

“The good thing from my perspective is that the restaurant creates interest for the brand,” he said.

Lexus of Tasmania Restaurant, The Rox

“The restaurant creates a buzz for the showroom with the activity of local suppliers dropping off produce, and the kitchen staff working three or four days a week preparing for the nights that they open.

“The dealership doesn’t sell used cars on site – their details and photos are displayed in the window much like a real estate agency’s shop – and the service workshop is outside the CBD. We take and deliver customers’ cars to the workshop.”

The administration, including parts ordering and quotations, is done out of Perth. 

Mr Jeary said while “we’re not doing massive sales numbers” in Tasmania, Lexus is outperforming some rival brands and its hybrid sales are especially strong given the state’s leaning to environmental issues.

Melville will take the lessons of creating a boutique space for customers and concentrating on a personal experience but Mr Jeary said it won’t have a restaurant.

The site is on the corner of North Lake Road and McCoy Street in Melville. He said it will have easy access for customers and the corner location offers two entrances.

Lexus Tasmania

“It’s not going to be the biggest and it’s not going to be the grandest dealership in the area,” he said.

“But it is going to be very boutique and it will have great people working there for the customer. It will be an inviting place for people to come and won’t be overwhelming, with a showroom space for about six vehicles.

“There is a workshop out the back, some delivery bays, and a cafe which won’t be open to the public, but it will be a nice place for customers to wait or to sit while they make their decisions. 

“I’m looking at a staff of about 20 people when we open up there from July 1. I expect 12 of them will come out of Lexus of Perth.