Lexus, the Japanese luxury car brand, has significantly cut prices on its electric and hybrid models to boost sales.
Today's EV market is largely driven by fleet demand, with many drivers using low-tax salary sacrifice schemes through their employers. To attract more private buyers, Lexus has reduced prices substantially.
Higher-spec variants have seen even greater reductions, with some slashed by as much as £7,100. The biggest price cut is over £7,000 on the smallest EV model, the UX300e, which now starts at £40,795, down from £47,495.
Savings extend to the larger RZ450e, with the standard version now priced at £57,895, a £2,100 reduction. Hybrid models have also been discounted to draw more Britons into showrooms. The plug-in hybrid NX450h+ now costs £49,995, down from £54,950, and the RX450h+ is reduced from £67,100 to £63,995.
The only model unaffected by the cuts is the new LBX, recently named What Car? of the Year for 2024.
Lexus aims to make "premium quality electrified motoring accessible and affordable for more customers."
said Chris Hayes, director of Lexus in the UK, said, "At a time when people have become all too used to rising prices, we’re pleased to be reversing the trend and offering genuine reductions in the cost of ownership of our leading battery electric and plug-in hybrid models.
"The enhanced pricing comes with no compromise: customers can be assured of the same high levels of quality, reliability and customer service that have long distinguished our brand in the premium car market."
In reality, these price adjustments are likely an effort to boost lagging demand among private buyers, particularly for EVs. Official figures show new car sales in June surpassed one million for the first time since pre-pandemic 2019. However, this market growth is driven by fleet registrations, up 14.2% year-on-year, while private sales fell 15.3%.
At mid-2024, nearly 60% of new cars registered were for fleets, with only 38% bought by private individuals. For EVs, the fleet versus private sales gap is even wider, with fewer than one in five new electric cars bought privately. Despite this, Lexus is doing well in the UK, with 8,036 units sold from January to June, a 20% increase from the same period in 2023. These cuts could help Lexus surpass its best UK sales record of 15,963 cars last year.
Lexus is also ahead of the new zero-emission vehicle sales rules for 2024, which require a minimum 22% EV share. Currently, Lexus's EV share is around 30%, ahead of next year’s target. The Zero Emission Vehicle (ZEV) mandate requires manufacturers to sell an increasing share of electric cars each year, reaching 100% by 2035. However, there are doubts about these targets due to potential political changes that could shift the goalposts for car makers.
