Lexus Australia is welcoming competition from a host of challenger brands from China which are increasingly entering the luxury car space.

While cars made in China continue to sell in ever-increasing numbers, rapid technological and engineering advancements have seen them encroaching into the high-end segments previously dominated by legacy car makers from Europe and Japan.

However, newly-appointed Lexus Australia CEO Jack Hobbs, welcomed the increased competition, telling Whichcar by Wheels it was “good for the market”.

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“I think we respect the competition. We welcome it, actually. I think it’s good for the market in general, because it gives the customers more choice.

“That said, our focus is going to really be doubling down on what we do and what we do best .. I think our loyalty is the reward for the way we’ve done it in the past. And certainly, we’ve got good plans for our future to continue to have organic growth.”

Hobbs added that Lexus customers were doing more than just buying a new luxury car, citing the Japanese brand’s well-known after sales experience such as its Encore program as providing a point of difference.

“I think if we keep focusing on that … Lexus is not just a brand you buy, but it’s a brand that you belong with. And we want to continue expanding that space through our lifestyle activations, through our Encore membership, and some of the other things that we offer other than just really good product.”

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Challenger brands from China, like BYD, are growing in the luxury car space, often under-cutting legacy brands on price while offering the same levels of equipment

But Hobbs said he would not engage in a price war with luxury brands from China, despite recently slashing the price of the updated Lexus RZ electric mid-size SUV by around $40,000. 

“We always want to make sure we look at what the market’s doing,” he told Whichcar by Wheels. “And we don’t want to race to the bottom per se, but we want to make sure that we’re offering really good value for what we do offer in the market.”