Lexus Interested in Tesla Mall Sale Approach

Published By : 16 Dec 2014 | Published By : QYRESEARCH

Lexus promotes its vehicles with the belief that hybrid cars are superior to fully battery powered electric cars. But when it comes to branding tactics, Lexus seems to be more interested in the strategies that Tesla Motors are following. The directors of the luxury wing of Toyota have been intrigued with the direct sales model played out by Tesla.

As stated by the U.S. chief for Lexus, Jeff Bracken thinks that Tesla’s marketing strategy of using company owned shops in malls is a rather clever idea. He also explained why in an interview with the car trade journal Ward’s Auto.

The executives over at Lexus believe that Tesla Stores are going to attract younger buyers that are supposedly not interested in surveying traditional dealerships or franchises.

According to their research, current generation buyers tend to do most of their research online and are younger than the salesperson in attendance. This creates an unnecessary pressure in the sales environment, something that Tesla plans to eliminate through mall stores.

On the other hand, Tesla’s sales model has met with strong discontent from car sales associations in multiple states. This had also led to bans on direct sales in a few states.

Bracken said that although Lexus is not discussing any concrete plans for mall stores of its own, it will keep dealers as a part of the solution. At the same time, it has become apparent that Lexus is now seeing Tesla as more of a legitimate rival than it previously did.
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