Our first question to Docksey was to ask how Lexus fleet business had been? 

He said: “In terms of total volume, if we look back to 2022, we did just short of 11,000 units. That’s now up to nearly 16,700 last year. 

“That’s total volumes, but if we look within that at retail and fleet, retail is up by 25%, and fleet has doubled in the space of two years. So, we’ve gone from 4,000 fleet units in 2022 to around 8,000 last year. 

“LBX is the driver for that total volume, but that’s more on the retail side. Where we’re seeing the real growth in fleet is with the plug-in models NX and RX, which have really resonated with fleet customers. And, the EV product, particularly the RZ. There’s big fleet demand for that in the UK, thanks to the BIK structure – about 60% of RZs sold are to contract hire.”

Docksey went on to tell us how the launch of single-motor RZ versions increased fleet interest. 

He said: “We were performing well, and from a retail perspective the Direct4 really appeals.  But it is front-wheel drive [that appeals] in the fleet space, with the bigger range, and it being more accessible from a price perspective. It is around a £5,000 lower price in the UK. We’ve also adapted the specification grade line-up, to offer more options.”

We pushed Docksey on what the most popular RZ equipment grade was for fleet buyers? 

He said: “Premium Plus is what we see as a sweet spot in the RZ range, and that’s proven through the demand we’ve already seen. There are probably a few reasons for that; firstly, it’s the highest trim level that you can get with the front-wheel drive, single motor RZ versions. Takumi is going to be exclusive for the Direct4 versions. 

“We’ve also opened the smaller 18in wheel option, which is one of our biggest learnings. It seems like a small point, but smaller alloy wheel options are quite different to what we’re used to selling at Lexus. We’ve seen a lot of customer demand on RZ for the smaller alloy wheel option, as it gives an extra 20-30 miles of range.”

We moved on to ask Docksey if he thought Premium Plus would still be the most popular RZ grade following the model’s facelift? 

He said: “We see it being consistent, if not further increasing. This is because of the design enhancements, and spec additions on the Premium Plus trim. So, we still see that as the best-seller in the fleet space. 

“It will be interesting to see what happens with the new F Sport range-topper, as there’s definitely a small market for fleet with that. We see buyers choosing premium EVs, because they’re so cost-effective – you can go for a top spec, and it’s more affordable through the BIK framework than a conventional choice.”

Docksey believes new premium EV buyers will be drawn towards the RZ with its facelift updates. 

He said: “The facelift probably addresses key bits of feedback we had for the previous RZ – particularly in terms of range. It has got a good range today, but we really move into the heart of the market with the RZ350e, which is capable of up to 352 miles – that will help for sure.” 

Docksey told us that Lexus’s strategy was to move hybrid or plug-in hybrid model fleet drivers to EV. 

He said: “It has been our strategy for the last couple of years. It is about making sure we have the correct product when customers are ready for it. 

“We’re seeing a lot of people moving from hybrid to plug-in, then they’ve got used to plug-in, doing smaller journeys and have realised that day to day it’s like an EV. Then, suddenly, they’re more open to now consider an EV. 

“If we didn’t have that middle step – the plug-in – they may never have considered that jump, so it’s working quite logically. 

“In the fleet space we’ve got a lot going straight for EV. It’s very cost-effective, and it makes sense to do that.” 

With this larger choice of Lexus models, we asked Docksey if it was easier to tend for fleet business? 

He said: “Yes, because we’re able to talk about hybrids, plug-ins and EVs. I want to keep to Lexus, but they can talk about the wider Toyota family as well, which includes passenger and commercial vehicles. 

“What a great position to be able to go and talk to fleet customers about! If you want a premium hybrid car, we can help with that, if you want a premium plug-in, or EV, or even a mainstream car or commercial vehicle, we can help with that too. It is like a ‘one-stop shop’ as we’re calling it, from a product, and finance perspective. 

“We’ve got our LFS and Kinto proposition as well, so we can almost offer anything from a product perspective, and all the finance options – all in one place. We’re getting loads of success with that, as you only need to talk to one person – which is great. We’ve also increased the size of our fleet field team, as we know customers really value that human interface and specialist advice.” 

With the updated Lexus RZ offering more for fleet drivers, we asked Docksey if Lexus was going to do anything differently in putting the car in front of them?  

He said: “It will probably be an evolution of what we’re doing already. We’ve now got over two solid years of EV understanding and knowledge with the RZ. It is probably a natural evolution of what we were doing, but within that, trying to amplify the changes – the bigger range, and the changes to the product execution. 

“We run quite a significant number of demonstration vehicles centrally, and we will send them direct to fleet companies – if they want to borrow one for two, to three-weeks, or whatever we can do to support dedicated fleets. So, as soon as we can get these vehicles in the UK, we’ll be getting them out there for customers to experience.” 

Our final question to Docksey, considering the brand’s increased fleet sales volume, was where Lexus expected to be in terms of fleet sales this year? 

He said: “We’re optimistic, but realistic in terms of how much further we can go as a brand. We don’t want to over-push the volume, because we don’t want to dilute what Lexus is all about in terms of offering excellent customer experience, both on retail and fleet, and across sales and service. 

“Certainly, we’d like to maintain volume at the current level that we’re at. From a product perspective, the all-new ES is next, which is another gamechanger in fleet, particularly with the EV powertrain. We have a really strong base from the current model, so it is an exciting opportunity for us.” 

Martyn Collins is the editor of Business Car, a GlobalData Plc publication