Lexus vs China's New Premium Brands: What WA Buyers Need to Know

Chinese premium brands Denza and Zeekr are no longer underdogs in the Australian new-car market — they're outselling Lexus in key segments, and Lexus knows it. For WA buyers weighing up a premium SUV or people mover, the competitive shake-up is genuinely good news.

The Numbers Don't Lie

So far in 2026, Lexus leads the group with 3,914 sales nationally, but Zeekr is closing fast with 2,838 and Denza has notched 1,131 — impressive given it only arrived in Australia late last year. In the medium SUV segment, the electric Zeekr 7X (2,698 sales) has already outsold the Lexus NX (1,874). Denza's B5 and B8 plug-in hybrid off-road SUVs have outsold both the Lexus GX and LX.

These aren't bargain-basement alternatives either. Denza and Zeekr are positioning themselves firmly as premium products with sharp pricing, strong warranties, and battery-electric or plug-in hybrid powertrains — exactly the kind of vehicles that make sense for Perth metro driving and, increasingly, for buyers who want the range and flexibility of a PHEV on longer regional runs out to places like the Wheatbelt or the South West.

Denza offers a six-year/150,000-kilometre warranty, while Zeekr matches Lexus at five years with unlimited kilometres. Neither is a risk you'd be taking blind.

How Lexus Is Hitting Back

Lexus Australia chief executive Jack Hobbs isn't panicking, but he's clearly paying attention. Speaking at the launch of the updated 2026 RZ electric SUV — which received a price cut of up to $42,000 — Hobbs acknowledged the competition directly: "We actually respect competition, and we think it's ultimately good for consumers."

The brand's response isn't a price war. Instead, Lexus is leaning into what it calls its 'peace of mind promise' — the ownership experience that's harder for newer brands to replicate overnight. That includes a five-year/unlimited-kilometre warranty, three years of complimentary roadside assistance, and the Lexus Encore ownership program.

For WA buyers, one practical advantage stands out: Lexus has a parts distribution warehouse right here in Perth, shared with Toyota's national network. If you've ever waited weeks for parts on a less common import, that's not a small thing — especially if your vehicle is your daily driver through the northern suburbs or you're covering serious kilometres on regional WA roads.

"We're doubling down on things like making sure our dealer staff are well-trained and the technicians are able to handle anything that comes in, right through to our parts distribution network, which is vast across Australia," Hobbs said.

Lexus also isn't abandoning petrol or diesel models where demand exists. With 87 per cent of its 2026 Australian sales being hybrid, PHEV or battery-electric, the brand is clearly moving with the market — but it's not forcing the pace. Given WA's fuel prices and the long distances many drivers cover, having a genuine multi-powertrain lineup rather than an EV-only push is a sensible call.

What This Means If You're Shopping Now

The short version: you have more genuine options than ever in the premium segment, and the competition is forcing every brand to sharpen its offer.

If long-term servicing confidence matters to you — and for most WA buyers running a vehicle as a primary family or work car, it should — Lexus's established dealer and parts network is a real advantage over brands still building their Australian infrastructure.

But if you're open to something newer and want strong value, a longer warranty, and a modern EV or PHEV drivetrain, Denza and Zeekr deserve a serious look. The Zeekr 7X in particular is proving popular for good reason, and Zeekr has confirmed its larger 8X and 9X full-size SUVs will arrive in the next 12 to 18 months as its first plug-in hybrid models.

The premium car market in WA is more competitive than it's been in years. That's a win for buyers.