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Still no plug-in hybrids at Lexus? Here's why the brand is still not taking orders for its popular Lexus NX PHEV mid-size SUV

Lexus says, if anything, demand is a little too high for its first PHEV in Australia.

Lexus has been overwhelmed by the reception to its first plug-in hybrid, the NX 450h+. In fact, demand is so strong it has been pulled from the brand's ordering system.

Speaking to CarsGuide at the launch of its newest SUV offering, the pint-sized LBX, Lexus Australia Chief Executive John Pappas explained what's been going on with the popular PHEV and what happens next.

"We're not taking any orders for the NX plug-in because demand far outweighed supply. It was creating frustration, so we paused. Our priority is to get rid of the backlog - there are still cars coming in and every month we're cutting it down. We're hoping early next year we'll be able to order more."

When queried on whether supply of the plug-in specifically was improving from the factory, Pappas said, "It's tough".

"It's a very high-demand product, the NX plug-in. We're realising that people who have hybrid who want to move to a BEV are going to PHEV [first] they get all the peace of mind with that as a BEV alternative - particularly in Australia it's proving very popular."

But he said, while PHEV was popular, even if demand was unlimited, it still wouldn't quite rival the brand's fairly unique plugless offerings in terms of sales.

The only plug-in hybrid NX variant, the 450h+ F Sport is a relative plug-in bargain for the premium segment.

"I think it's going to take time. Hybrid has taken us a long time. You can't just flick the switch and everyone wants a BEV. PHEV is about education all over again. How does it work? What's the residual of a PHEV like? Then we can start to increase that [as part of] the composition of the sales. I don't see this matching [plugless] hybrid."

However, Pappas re-iterated the unprecedented level of demand for plug-ins for the NX is largely because many of the brand's hybrid owners weren't yet willing to make the step to a BEV.

"They're getting educated - when they're coming out of the hybrid and now they're getting into the PHEV as an alternative and they're saying ‘that makes sense' so they go for that [instead of a BEV]," he said.

So far this year the NX is off to a strong start, moving 932 units, nearly doubling volume from where it was last year.

The only plug-in hybrid NX variant, the 450h+ F Sport is a relative plug-in bargain for the premium segment, costing buyers just $90,948 before on-road costs. At its launch it undercut rivals like the BMW xDrive 30e, Mercedes-Benz GLC300e and Volvo XC60 Recharge by a significant margin.

It pairs a 2.5-litre four-cylinder engine with dual electric motors for a total power output of 227kW and its 18.1kWh battery allows it an 87km EV driving range according to the more lenient NEDC measuring standard.

So far this year the NX is off to a strong start, moving 932 units, nearly doubling volume from where it was last year. Excluding the Tesla Model Y (with 2456 units so far in 2024) it is easily the most popular mid-size SUV in the premium (over $60K) price bracket, outselling the Audi Q5, BMW X3, Mazda CX-60 and Porsche Macan at a ratio of nearly 2:1.

Pappas re-iterated the unprecedented level of demand for plug-ins for the NX is largely because many of the brand's hybrid owners weren’t yet willing to make the step to a BEV.

Last year was also the largest ever year for Lexus on record, with local sales up a staggering 114.3 per cent on 2022. However, the brand is cautiously optimistic for 2024, noting the inflated sales figure for the full year of 2023 included many orders from previous years that it was finally able to fulfil thanks to supply improvements.

It now says supply across its range (clearly excluding the NX450h+) is "stable" and that it expects its new yearly base-line to be 10,000 units (annually).

Tom White
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Despite studying ancient history and law at university, it makes sense Tom ended up writing about cars, as he spent the majority of his waking hours finding ways to drive...
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