Lexus isn’t sleeping. Not really.
Chinese brands are here. And they mean business.
For years, the luxury fight in Australia was strictly European versus Japanese. Now Geely’s Zeekr, BYD’s Denza, and MG’s IM are kicking down the door. They come armed with aggressive pricing. They bring top-shelf specs. They want to dismantle the legacy status quo.
But some aren’t just fighting on metal and batteries. They are fighting on belonging.
“We respect the competition… because it ultimately serves customers,” said Lexus Australia CEO Jack Hobbs.
That’s the thing about this new wave. Denza just launched the House of Denza program. It sounds familiar? Good. It mirrors Lexus’s own Encore membership. Exclusive events. Brand spaces. Priority service. They are trying to buy your loyalty post-purchase, exactly like Lexus has been doing for years.
In fact, it got personal.
In August 2025, Denza hired the director of its entire House of Denza initiative right from Lexus. Fresh off a three-year run leading the Encore program. They poached the architect.
Does that scare Lexus?
Jack Hobbs doesn’t sound like it. He wants you to look closer at what they’re doubling down on. It isn’t just about buying a car. It is about staying with the brand for the long haul.
It’s a full package. Peace of mind. The kind of thing that takes time to build.
Encore isn’t new, but it has been growing. Since the expansion in 2020 it is automatically tied to every new or certified pre-owned Lexus purchase. The benefits stack up fast.
Standard Encore gives you access to exclusive events. Service loan cars while you wait. Paid airport lounge entry. Ampol fuel discounts.
If you want to go further? Encore Platinum adds valet parking. On-demand vehicle sharing. Free lounge access. No hoops. Just benefits.
Hobbs points to Kaizen.
“Lexus has spent 36 establishing the brand and a position around an amazing lifestyle experience.”
Kaizen means continuous improvement. The Japanese philosophy. Make it a little better. Always.
The numbers tell a tense story. Lexus sales dropped 13.8 percent year-on-year by late April, settling at 3914 units.
Meanwhile, Denza is climbing.
They passed 1,000 sales just months after starting deliveries in January. Momentum is with them, right now. At least on the volume side.
So the battle shifts. Specs are one thing. Specs change yearly. Service culture? That lingers. Lexus is betting the house that people prefer comfort over cheapness. Over flashiness. Over newness.
The Chinese rivals have the numbers. They have the tech. But they have to prove they can keep the customer happy for three, five, ten years. Not just hand them the keys.
Hobbs says they will double down on that feeling of belonging. The Encore program is their shield. It is polished. It is refined. It works for the people already in the car.
But can a shield stop an arrow moving this fast?
The Chinese brands are here to stay. They are copying the playbook. And in the luxury market, the owner’s experience is the only thing left to differentiate. Everyone sells a good car. Now it’s about who remembers you better.
