Heading into the annual Lexus dealer meeting in Atlanta, Dejuan Ross, Group Vice President and General Manager of the Lexus Division at Toyota Motor North America, joins us on today’s episode of Inside Automotive to detail how the luxury automaker is maintaining its record-breaking momentum.
Coming off an all-time best sales year in 2025 and a record-setting September across sales, parts, and service, Ross outlined how a disciplined inventory model, strong dealer partnerships, and a balanced multi-path powertrain strategy are keeping Lexus ahead of the curve.
Reflecting on his 31-year career with the company, Ross pointed to the brand’s current vehicle lineup as the foundation of ongoing success. He said Lexus expects to finish 2026 with roughly 360,000 to 365,000 new-vehicle sales, marking its second consecutive record year, and plans to increase to roughly 370,000 units in 2027. Ross also attributed the strong new-vehicle sales to the expanded volume of Units In Operations (UIO), which creates sustained service and parts opportunities for dealership service departments.
Multipath strategy
Electrification remains central to Lexus’ product strategy, but the brand is not relying on battery-electric vehicles alone. Its multipath approach gives customers different powertrain options, with plans for a battery-electric vehicle in each key segment and hybrid availability across most of the lineup. Ross said demand for hybrids remains particularly strong, while plug-in hybrids are also attracting interest. Lexus is also preparing to enter a new segment with a three-row, all-electric SUV.
"Historically in times where we've had some headwinds with the market, whether affordability, tariffs, etc., we've always managed to pick up market share because I think in the mind of the guest, Lexus is a safe, a safe buy."
Lexus is also maintaining a disciplined approach to inventory. The brand ended September with a 16-day supply, according to Ross, who said Lexus has not exceeded a 20-day supply since June 2024. Keeping inventory lean helps dealers manage floorplan expenses and protect profitability, although it requires clear communication with customers about vehicle availability and delivery timelines.
Dealer meeting aims to build confidence
Affordability remains a concern, particularly for customers returning from leases who may face substantially higher monthly payments on their next vehicle. Ross said Lexus is working on lease offers, especially for entry-level models, to help narrow that payment gap. He also pointed to production capacity, vehicle availability, fixed ops and certified pre-owned sales as important opportunities for dealers in 2027, as more lease-return vehicles enter the market.
For Ross, the annual dealer meeting is about more than sharing sales goals and product plans. He said Lexus wants dealers to leave confident in the brand’s direction and more willing to invest in their facilities and employees. “I view the dealer meeting as one opportunity for us to sell one thing, and we sell confidence,” Ross said. That confidence, backed by new products, hybrid demand and a focus on dealer profitability, will be central to Lexus’ effort to sustain its momentum.
