Lexus has maintained a subdued presence in Malaysia, both as a brand and in the electric vehicle (EV) space. While it has a stronger foothold compared to Infiniti, the company seems to focus primarily on luxury SUVs that cater to an older, wealthier demographic.

A quick visit to Lexus Malaysia’s official website reveals just two electrified options: the fully electric RZ 450e and the hybrid RX 500h. The RZ 450e, however, is conspicuously absent from the streets despite being available for over a year.

So, why isn’t the RZ 450e making waves?

1. Price and Value Concerns

The RZ 450e’s pricing is likely a significant barrier, particularly when compared to the highly popular Tesla Model Y or even the Lotus Eletre (I have seen more Eletre’s for some reason). Tesla, with its competitive pricing and range, benefits from government incentives in Malaysia are advantages Lexus does not seem to enjoy. This disparity puts Lexus at a disadvantage for buyers who prioritize cost-efficiency and innovation.

2. Mediocre Specifications

The RZ 450e’s 440 km range (WLTP) is unremarkable, especially when benchmarked against the likes of its Chinese rivals. Additionally, the design has been polarizing, with many deeming it uninspiring, a trait that doesn’t help a car trying to capture the EV enthusiast or early adopters market.

3. Lexus’ Narrow Focus

Lexus appears to focus exclusively on SUVs and luxury MPVs like the LM in Malaysia, leaving little room for diversity in their lineup. This narrow strategy may alienate potential customers seeking variety, especially as their sedan lineup is largely unavailable.

The Malaysian Luxury Car Landscape

In Malaysia, the luxury car market is dominated by brands like BMW and Mercedes-Benz, particularly in the sedan segment. Even Audi struggles with visibility. For most wealthy Malaysians, a typical vehicle progression involves purchasing a Toyota Vellfire or Alphard, followed by a luxury SUV like the Lexus RX series.

While you could still get Lexus sport sedans, such as the RC and IS, they are only accessible through parallel imports and remain niche options.

Socioeconomic Challenges

Another factor contributing to Lexus’ underwhelming performance in Malaysia could be the country’s economic uncertainties. With purchasing power eroding and Malaysians facing financial strain, luxury vehicles like Lexus find it harder to compete for a shrinking pool of buyers.

Lexus’ lack of innovation and limited product range in Malaysia, coupled with economic challenges and fierce competition, makes it difficult for the brand to establish itself as a compelling choice in the EV market. To regain momentum, Lexus may need to rethink its strategy by diversifying its offerings and ensuring competitive pricing. Until then, it risks remaining overshadowed by Tesla and the dominant German trio of BMW, Mercedes-Benz, and Audi.

It is time for Lexus to bring out an IS-F like BEV!