Lexus Australia has pledged to continue to improve the ownership experience it offers its customers, as it looks to fend off new premium challenger brands from China.
Previously pitted mainly against European opposition, Lexus now faces competition from China in the form of Geely’s Zeekr and BYD’s Denza brands, and MG’s IM sub-brand.
And while most newcomers have sought to beat ‘legacy’ brands on price and vehicle specification, some are now attempting to entice customers through post-purchase perks, as Lexus has long done with its Encore membership program.
For example, Denza has launched ‘House of Denza’ – a similar program that grants customers access to exclusive brand spaces and events, plus priority service.
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Denza Australia even hired the current director of its House of Denza initiative directly from Lexus in August 2025, fresh off the back of three years in charge of Encore.
Lexus Australia has stayed on top of these developments, and vows to elevate its offering in response.
“We respect the competition, and we actually welcome competition, because it ultimately serves customers,” local CEO Jack Hobbs told CarExpert.
“At the same time, we like to focus on what we do and the brand proposition that we offer, which is that extension of not just the purchase but belonging to the brand long term.
“It’s that full package and peace of mind that Lexus offers that we’ll double down on.”
Lexus has continued to refine and add to Encore since expanding the program in 2020, with all buyers of new and certified pre-owned vehicles now entitled to varying levels of complimentary membership.
The lowest level of membership – Encore – offers benefits including access to exclusive events, service loan vehicles, paid airport lounge access, and an Ampol fuel discount.
Encore Platinum, the highest level available, adds on-demand vehicle sharing, valet parking, and free lounge access.
“It’s not just about product quality for us,” explained Mr Hobbs.
“Lexus has spent 36 years establishing the brand and a brand position around an amazing lifestyle experience, and we continue to Kaizen our Encore offering that’s very popular with our customers.”
Kaizen is the Japanese philosophy of continuous improvement.
Lexus sales were down 13.8 per cent year-on-year at the end of April to 3914 units, while Denza ticked past 1000 sales after commencing local deliveries in January.