Lexus EV Transition Is Reportedly Going Well So Far

Brave New World

Lexus made a massive commitment when it announced that it would be transitioning its entire lineup to EVs in the coming years, a big gamble that could pay off big time if the world embraces electric vehicles the way many hope. Long a pioneer in the world of hybrids, Lexus had a bit of a jump start on much of its competition in that regard, and as brand chief Dejuan Ross recently explained to Automotive News, its electrification journey is going well so far. 

Photos: Lexus

Alternatives

Though Lexus currently only sells one EV, the RZ 450e - in the U.S., at least - Ross reiterated that the luxury brand remains committed to its upcoming transition. In the meantime, Lexus is leveraging its hybrid lineup to fill the void. "Everyone coming in for a BEV may or may not need a BEV based upon their driving habits and what they're trying to accomplish," he said. "The fact that we have so many hybrid vehicles and plug-ins available, there might be another solution for the customer, based on their needs."

Photos: Lexus

Competitive Advantage

Ross sees the brand's dealer network as a major boon to its efforts as well, giving it a strength that established EV sellers like Tesla simply don't have. "We see our dealers as a competitive advantage, especially against competitors that don't have a dealer network," he said. "We're working with our dealers to make sure that they can address guest needs."

Photos: Lexus

Subject Matter Experts

In that sense, however, dealer employee training is key, as those folks must be able to help customers understand what makes EVs different from ICE vehicles. "Well, I think what we want to do is position our dealers to be kind of the Shell answer men and women for all things electrified, which will allow us to bring in more conquest business," Ross added.

Photos: Lexus

No Drop Off

In terms of service, Ross doesn't believe that EVs will play out any different, either. "We don't anticipate that our service business, which has been doing very well over the last couple of years, will let off. There was a little concern, as we go electric, what it would do to service revenues, but in the short term, they're going to be just fine."

Photos: Lexus

Leasing Opportunities

The same goes for leasing, which should be appealing for a lot of folks that have never owned an EV before. "There's a huge opportunity for leasing right now because in the current market, our leasing portfolio has shrunk quite a bit," Ross said. "Our goal is to grow leasing, and then I think there will be opportunities. The benefit of having a captive finance company is that we've been having those discussions. As we get back to focusing on leasing, then opportunities will occur as we follow the asset through the maturation process."

Photos: Lexus

Easing In

While going fully electric is a massive shift for any automaker - big or small - it seems as if Lexus isn't worried about hitting too many snags in the road in that regard. With a strong portfolio of ICE vehicles in the meantime, it can afford to ease into that particular segment, too.

Photos: Lexus

>>Join the conversation about Lexus's EV transition right here at ClubLexus.com.

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