Andrew Davis is Literally Driving Innovation

As Chief Strategic Officer and Vice President of Mobility, Lexus and Motorsport at Toyota New Zealand, Andrew Davis has been a key figure in Lexus’s rise as one of the country’s fastest-growing premium automotive brands. Over nearly two decades with Toyota, his leadership has helped guide Lexus through a period of rapid transformation, marked by the brand’s shift toward electrification, an increasing focus on design-led innovation, and a record-setting year for sales in 2024.

While Lexus has built its global reputation on craftsmanship and reliability, Davis has been instrumental in shaping its local relevance through strategic partnerships, customer experience initiatives, and a focus on long-term brand vision over short-term metrics. With more than 80% of Lexus vehicles sold in New Zealand now electrified, and the brand continuing to invest in customer-centric innovation, Davis sees opportunity not just in technology, but in the way it’s delivered.

Davis shares with us his perspective on leadership, the future of mobility, and the role New Zealand can play in driving innovation on a global stage.

You have had a strong tenure with Lexus. How has your leadership style evolved over that journey?
Lexus is a brand that is extremely active both locally and globally, so it has been a privilege for me to work with many leaders who have taken on the challenge of growing the Lexus brand.
As a leader, my initial focus was on delivering results and setting clear direction as growth takes investment, so your stakeholders need to believe in what you want to achieve. Now my focus is around collaboration and empowerment as I’ve come to see even greater value in creating an environment where people feel trusted, supported, and inspired to bring their best selves to work.

What’s the most important leadership lesson you’ve learned from working across both Toyota and Lexus?

Don’t be complacent!
The recipe for success for both brands is quite different and you must be able to lead strongly through change. For example, Toyota has been a market leader for 38 years and Lexus has an ambition to be the number one luxury brand in New Zealand, so in both cases your teams need to understand where you are going and what you want to achieve. Our teams are investing their time and energy in their own careers, so you need to lean more into empathy and to prioritise long-term relationships over short-term wins. Ultimately, leadership is about serving others by empowering people to reach their potential. Brands grow around people. They’re your greatest asset and they should be your biggest advocates as well.

Lexus has built a reputation for blending luxury with cutting-edge technology, how does innovation factor into your day-to-day leadership?

I encourage our team to think differently, to challenge convention, and to explore how we can better serve our customers in meaningful, forward-thinking ways. Lexus globally sets an incredibly high bar when it comes to innovation, whether that’s through electrification, craftsmanship, or design—and locally, we take that spirit and ask ourselves how we can apply it to what Kiwi drivers want and need. That in mind, we try and focus on what our customers experience and how they feel when they engage with Lexus rather than just being a logo or a brand.

Lexus New Zealand has achieved record sales over the last year. What key factors do you attribute to this significant growth?

Two things. We are privileged to have engaged stakeholders who strongly believe in Lexus and who are investing in the growth of the brand. More critically our product is improving significantly so our position in the market reflects the trust and loyalty Kiwi drivers have towards Lexus. Luxury customers have high expectations on the brands they associate with, and there is a lot of competition and choice in the luxury market. So how do you gain an edge? You must listen―to your team and to your customers. That’s the ultimate lesson I’ve learned.

There are several reasons for this. Firstly, our customers’ appreciation of the expanding electrified product range, secondly, our extensive customer benefits package and wrap-around support we

offer. We don’t believe our obligation ends once a customer drives their car off the lot. We must continue to add the value and support that makes the Lexus ownership experience unique.

That also talks to my final point, our Lexus dealer network. We are well known for the quality of our dealer network and the level of service delivered throughout the consumer experience. Our dealers have continued to invest in their dealerships and to offer a stand-out service beyond the product itself.

How do you balance long-term brand vision with the pressure of quarterly or yearly sales targets?

There will always be flux from quarter to quarter, but the ultimate goal is to have a trending trajectory upwards – to continue to build a little more each day. Our target is the sustained growth that is built through trust and reliability, not short-term growth based around sales cycles.

My view is that you need a solid management team focused on quarterly or yearly targets to enable business leaders to focus on the longer term and brand vision. Yes, every sales day is important, and you must be aligned but I have learned that if you are all constantly focused on the immediate sales target it is easy to lose your way, and you are not investing in sustaining your business.

How does Lexus NZ stay aligned with the global brand while innovating locally?

Think global, act local. While our vehicles are designed globally, we ensure we are offering a product range that meets the needs of the local market. More than 80% of the vehicles we sell in New Zealand are now electrified, and we need to ensure that there is wrap-around support for our customers.

Local innovation partnerships like Lexus Design Awards and Auckland Design Week, empower and encourage the next generation of local creators, but its also about ensuring we live up to the value of omotenashi by delivering an exceptional ownership experience that anticipates needs, exceeds expectations, and leaves a lasting impression. We are fortunate to have Lexus dealerships who are heavily engaged on supporting the bigger cause and activate in their own way as well.

What’s your take on AI and autonomous systems—how do they fit into the Lexus vision?

The automotive industry is on a journey towards fully autonomous and AI enabled vehicles, and this is no different for Lexus. One of our philosophies is also to be human centred and to anticipate the needs of the driver. This is why many of the safety systems and we use today are driver enabled as we need to teach customers and take them on the journey towards the future.

Lexus was a pioneer in hybrid technology. How do you maintain that lead in an increasingly crowded space?

Lexus first, powertrain second. We make sure customers are experiencing the brand and product then work around this to provide the most sustainable powertrain possible to meet their needs.
Globally Lexus aims to provide all-electric vehicles in every segment over the coming years, but beyond that there are many other environmental factors we’re considering―we’re actively working to reduce waste and promote recycling. This includes responsibly handling and recycling the batteries used in our electrified vehicles.

How important is collaboration with external partners, such as events like Auckland Design Week and M2 AI Summit, for Lexus’s innovation journey?

Lexus has always stood for more than just exceptional vehicles—we’re about delivering experiences that reflect a deep connection with our customers and communities. In Aotearoa, our partnerships reflect that ethos and play an important role in driving innovation across everything we do.

We proudly partner with organisations that share our values and who find collaboration important. Whether it’s through design with Lexus Design Award or Auckland Design Week, technology, like the M2 AI Summit, or forward-thinking sustainability. One example is our long-standing involvement with the Malaghan Institute, a leading independent medical research institute focused on finding progressive treatments for disease including cancer. Every collaboration is an opportunity to learn and engage with others and bring that back to the work we do.

How do you personally keep learning and staying ahead of industry shifts?

The pace of change in the automotive and mobility space is relentless, and that makes continuous learning not just important—but essential. For me, staying ahead starts with staying curious. I’m constantly reading, listening, and learning from a wide range of sources—whether it’s global industry reports, customer insights, or even perspectives from adjacent industries like technology and sustainability.

I also believe strongly in the power of connection. Being part of an organisation like Lexus gives us access to global thinking and innovation, and I make the most of that by engaging with our international teams, learning what’s working in other markets, and bringing those insights to New Zealand. At the same time, I stay close to our local customers, our dealers, and our team. That’s where you really understand the opportunities to lead, adapt and innovate.

There is also nothing wrong with driving a wide range of products and getting feedback from friends and family – we are all consumers!

Lexus is all about reimagining the future. We are in a time of profound technological change. If you look ahead 5 years, where do you see New Zealand and our place in driving global innovation?

Progress doesn’t take shortcuts. I believe New Zealand has potential to go even further as a global innovator – we are curious by nature, and we like to explore. I hope we can continue to find ways to foster our Kiwi culture while working with organisations who are wanting to invest in our business and innovations that come from within our wonderful country.

In terms of Lexus, as we aim to achieve all-electric vehicles in every segment globally in the coming years, our vision of electrification is a driving experience that pushes the limits of performance and versatility. Lexus is about imaginative design, impeccable craftsmanship, and the support of a nationwide network of dealers, it’s a vision of every electrified Lexus living up to the highest automotive standard of all.