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The quick read

Lexus is ending production of the UX, a rival to the Audi Q3 and BMW X1.

The LBX will be the only Lexus SUV positioned below the mid-size NX.

The UX's discontinuation will give Audi and BMW a temporary advantage in the compact luxury SUV market.

Dealers will need to clear UX stock and promote the LBX as a viable alternative.

For dealers: Australian dealers will need to adapt their sales strategies to compensate for the loss of the UX and promote the LBX as a competitive alternative in the compact luxury SUV market.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

The ADME angle

Lexus' decision to end production of the UX will create a gap in the market for a compact luxury SUV, which the LBX will need to fill in order to compete with the likes of Audi Q3 and BMW X1.

The UX was a key rival to these models, and its absence will give them a temporary advantage in terms of market share.

What it means for the order bank

Dealers who currently hold UX stock will need to consider how to clear this inventory before the model is discontinued, in order to make room for the LBX and other models.

The LBX will need to be priced competitively with the Q3 and X1 in order to attract customers who would have otherwise considered the UX.

Competitor response

Audi and BMW will likely respond to the UX's discontinuation by increasing their marketing efforts and potentially offering incentives to customers who are considering a compact luxury SUV.

Next steps

This week, dealers should review their current UX stock levels and develop a plan to clear this inventory, while also preparing to promote the LBX as a viable alternative to the Q3 and X1.

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