RECORD sales for Lexus in April triggered by reduced waiting times as stock became available, combined with an expanded product range highlighted by a second EV, is pushing Lexus to consider expansions to its dealer network.

The car-maker, which this week unveiled its RZ, the second Lexus battery-electric (BEV) model for Australia, has seen its sales buoyed by electrification. In April, 60 per cent of sales were for electrified (BEV, plug-in hybrid and hybrid) models and, year-to-date, the percentage is 47 per cent.

Importantly, it has significantly eased its supply bottle neck. Product waiting times have been reduced, in some cases halved, to as little as two months or – depending on model, trim and colour – to immediate availability.

Much of the easing of the stock delay is attributed to some markets – such as China – reducing demand. This has opened up production slots for other markets, including those with high demand such as Australia.

Lexus Australia CEO John Pappas told GoAutoNews Premium that electrification was a stimulus to the company’s growth since 2006 and is continuing to grow with 85 per cent of current Lexus RX orders for electrified – predominantly hybrid – models.

“We’ve been on this journey for many years. It has prepared the customer and the dealer for the transition to EVs,” he said at the launch in Adelaide of the Lexus RZ BEV.

“Our dealers have invested significantly in this journey, from an infrastructure point of view, within their dealership both in sales and in service and from training in sales.

“It is a journey for both us, as the distributor, and them as dealers. I’m really happy with how the dealers have embraced the move to bring more hybrids, PHEVs and BEVs into the showroom.

“When you look at the fact that 85 per cent of our order books are for hybrid and electrified models, it is very encouraging for us that we are on the right path.

“It’s important that we are very clear with (the dealers) on our expectations and to ensure they have time and the level of investment to be ready for those new technologies, or those new power trains, as they arise.

“We have a very close relationship with our dealers and we’re very transparent about the future of electrification and our plans with EVs in the future.”

Lexus announced that the RZ would be joined later this year by a hybrid people mover, the LM, to further boost the low-emission vehicle range.

The LM is a luxury people mover which is a first for Lexus. It aims primarily at the commercial tourist and resort transit sector but, as seen in overseas markets with similar vehicles, has demand from private buyers.

Mr Pappas said that as the product range expands and as sales follow the expected growth in concert with more certainty on supply, the dealer network could grow.

“Based on our brand strength and backed by product and supply, we’re going to need to look at expansion of extra sites through our dealer network,” he said.

“That’s really exciting for us, for the dealers and importantly, for our customers.”

Mr Pappas also said that growth in the new-car business was being matched by interest in the dealership stock of used cars, leading to upcoming expansions to the Lexus certified used-car program.

“We’re currently working on how that’s going to look and feel going forward,” he said.

“Obviously there’s advantages by making the used-car experience better for customers so the plans are to grow the Lexus certified pre-owned vehicle program and have a really integrated approach within the Lexus brand.”

By Neil Dowling