What's the difference?
The new Range Rover Velar P400e Dynamic HSE, or P400e for short, is the first Velar offered with a plug-in hybrid powertrain. In theory, this should make it a solid contender for those wanting a luxury SUV that produces a smaller and greener footprint.
It’s not as big as its Range Rover siblings, so if you’re after a sleeker Rangie that can do some 'mild' adventuring on the weekends while still looking flash during the week, this may be the one you’re looking for.
It faces competition from the BMW X5, Volvo XC90 and… at a stretch, the Porsche Cayenne. I’ve spent a week with the mid-level P400e Velar to see how it stacks up for everyday use.
When the Lexus RZ launched in Australia just over two years ago CarsGuide questioned the Japanese luxury brand’s relatively late arrival to the EV party.
And since then, this large, premium, battery-electric, five-seat SUV has proved something of a niche player with less than 100 sold in 2024 and a similar number in prospect for 2025.
But there’s been movement at the RZ station. This comprehensively updated model features a revised powertrain, retuned suspension, tweaked AWD system and the availability of things like steer-by-wire and a tricky manual mode in the auto transmission.
And yes, Lexus claims it’s more refined than its already smooth and near-silent predecessor.
Scheduled to hit local showrooms in the first half of 2026, we were invited to take a first drive at its global launch. So, read on to see if this could be your next electrically propelled, performance luxury, family favourite.
The Range Rover Velar P400e looks damn sexy and is large enough to house your family comfortably while still being easy to manoeuvre around town.
But I’m not a fan of these luxury brands forcing you to pay extra for what should be standard features when you’re at this grade level and price point. This is a model I’d pay close attention to in terms of the optional trims required to maintain a high-end feel.
But the powertrain works quite well here and it has pleasant on-road manners.
Smooth, quiet, quality sums up this new and improved Lexus RZ. But will tricky new tech like steer-by-wire and a manual mode in the F Sport's auto transmission be enough to sway more premium electric SUV buyers its way? Fold in this car’s value proposition as well as the brand’s spectacular ownership package and it just might be.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
Land Rover hasn’t updated the exterior looks of the Velar and for good reason. It is almost flawless in how sleek and sexy it looks. It hovers between its larger Ranger Rover siblings and the more nimble-looking Discovery Sport.
There is still a distinctly ‘Range Rover’ vibe but it looks more agile and fun than its bigger siblings. But while its external looks are beautiful, the cabin loses me.
It’s even more pared back now than the pre-facelifted model and while the minimalistic style will appeal to some it doesn’t tick the luxury factor box for me.
There are too many plain and empty spaces in the dashboard and doors. The multimedia system has been updated to the cool 11.4-inch floating-effect screen but all the buttons and dials are gone. So, there’s even less going on and it makes you 100 per cent reliant on the screen.
And funnily enough, the grey knit fabric and synthetic material that’s used in the upholstery and trims is an optional extra and replaces Windsor leather. The knit-fabric adds some warmth but the black synthetic stuff is awful to touch or clean and reminds me too much of neoprene-style wetsuit material.
The large panoramic sunroof keeps the cabin feeling bright and cheery when it's open, though.
Not a tremendous amount of change in terms of exterior design for this update with the brand’s signature angular treatment retained including a prominent snub nose and 20-inch rims on both variants of the car.
The top-spec F Sport picks up extra aero-focused elements, particularly around the lower bumper at the front, as well as aero covers on the wheels and at the back a spoiler on the tailgate as well as a faux diffuser at the bottom of the lower bumper.
Not much has changed inside either except for a steering wheel-shaped elephant in the room in the form of a yoke that goes with the steer-by-wire function on the 550e F Sport. A significant, eyebrow-raising departure.
However, the curved instrument binnacle, central 14-inch multimedia screen as well as the design of the centre console remain unchanged.
Having said that, there are new ‘laser-patterned’ designs in the door card trims and dynamic lighting graphics in the doors, as well.
The functionality of the touch-dimmable panoramic roof has also been improved and it works beautifully.
Practicality on a whole is pretty good in the Velar and that comes down mostly to the space provided for each occupant and the high-end tech.
Up front, there is a lot of head- and legroom for my 168cm height and even when you have a co-pilot you’re not jockeying for elbow room.
The seats are very comfortable as they’re well-cushioned and feature excellent lumbar support. I miss a seat heat function on colder days but you can easily do a long trip in the Velar and not feel too fatigued.
The 214mm ground clearance has made it an easy SUV to get in and out of, for me and my seven-year old. Annoyingly, though, some of the doors don't close properly unless you slam them.
The individual storage is a bit less than you might expect as there's not a lot of centre console storage for little items but you still get a small glove box and middle console, two cupholders, two drink bottle holders and a phone cubby up front.
The back seat offers enough space for me to be comfortable but I did have a comment from my dad, who is 183cm, that it was a smidge squishy for him.
The seats are comfortable and amenities are good with two USB-C ports, a 12-volt socket, directional air vents, map pockets and a fold-down armrest with two cupholders. There are storage bins but they're very shallow.
Because of the sleek rear shaping, the boot space is smaller than most of its rivals at 625L when all seats are in use. It’s large enough for my gear and you should still be able to stack luggage easily for a road trip.
The technology on offer is pretty darn good. The multimedia system takes a while to get used to but once you do, it's an easy enough system to get around but not having any buttons/dials means you tend to look at it more than I like while on the go.
Unlike the Disco Sport I was just in, which features the same system, there have been no issues with connectivity with my iPhone with the Bluetooth or wireless Apple CarPlay. There’s also Android Auto and the built-in satellite navigation is top-notch.
I've already mentioned the rear charging options but up front you're spoiled for choice with a USB-A port, three USB-C ports and a wireless charging pad.
At a fraction over 4.8m long, close to 1.9m wide and a bit more than 1.6m tall, with a 2850mm wheelbase, the ZR is a sizeable machine.
There’s plenty of breathing space in the front and in terms of practicality the first thing that jumps out, or rather it doesn’t, is the lack of a conventional glove box.
But there is a large box between the front seats to take its place, with the lid (which doubles as a centre armrest) performing the Lexus party trick of being able to open towards the driver or passenger.
There are two cupholders in the centre console with a wireless charging pad ahead of them, plus decent bins in the doors for bottles and other bits and pieces. An additional tray sits under the main, flying buttress-style upper console.
For power and connectivity, there are USB-C sockets for charging and media as well as a 12-volt socket in the lower console section.
Getting into the back is easy thanks to wide-opening doors and a large entry aperture and seated behind the driver’s seat set for my 183cm position I’ve got hectares of leg- and headroom. Shoulder room is best for two full-size adults rather than three, which would be a short-journey squeeze. Three up to mid-teenage kids will be fine.
In terms of storage there are pockets on the front seatbacks, bins able to hold a large bottle in the doors and two cupholders in the fold-down centre armrest. Individual ventilation control for rear seat passengers is always welcome.
Then for power, there are two USB-C outlets and a ‘house-power’ socket underneath them. The 550e F Sport also includes heating controls for the two outer rear positions.
Lower rear axle packaging enhances boot space with a generous 522 litres on offer, expanding to 1451L with the 60/40 split-folding second row lowered. Tie-down anchors and bag hooks are a thoughtful touch and there are handy storage boxes under the flat floor, ideal for charging cables.
The standard power tailgate is nice, while a repair-inflator kit instead of a proper spare isn’t. Braked trailer towing capacity is a handy 1.5 tonnes.
The Velar is offered in three variants with a choice of four powertrains spread between them. The model I'm testing is the plug-in hybrid mid-level HSE Dynamic in P400e form, which sits right behind the flagship Autobiography.
The P400e is priced from $143,508, before on-road costs, and sits close to the middle of the pack compared to its rivals.
The Volvo XC90 Recharge Ultimate PHEV comes in as the most affordable at $128,990 MSRP, then the BMW X5 xDrive50e M Sport PHEV at $149,900 MSRP.
Even with our model's optioned extras, the Porsche Cayenne S E-Hybrid PHEV sits a country-mile above them all at $178,300 MSRP (thus it's a 'stretch').
Our test model has a few optioned extras, including a 'Dynamic Handling Pack' for $1750, a black contrast roof ($1420), ash veneer trim ($930), rear privacy glass ($890), 21-inch diamond turned alloys ($780), non-leather premium steering wheel ($750), black synthetic leather upholstery ($700), cabin lighting ($540), rear seat remote levers ($300) and 'Terrain Response' ($430).
That all equates to an extra $8490 and brings the total before on-roads costs price tag to $151,565.
Standard technology features that are included are an 11.4-inch touchscreen multimedia system, 12.3-inch digital instrument cluster, built-in satellite navigation, wireless connectivity for Apple CarPlay, wired Android Auto, Amazon Alexa app, dual-zone climate control, a wireless charging pad, five USB-C ports, one USB-A port, two 12-volt sockets and a Meridian sound system with digital radio.
Other features include pixel LED headlights, panoramic sunroof, keyless-entry, push-button start, rear fog lights, powered front seats, run-flat tyres, a powered boot lid and a tyre pressure monitoring system.
Annoyingly, a lot of luxury features have to be added at additional cost and given the price tag it's odd there are no heat or ventilation functions for the seats, no heat function for the steering wheel, no climate control for the rear or even a head-up display.
So, it feels a bit bare on features once you start to compare the Velar to some of its rivals, like the well-specified and more affordable Volvo.
Lexus says final price and specification for the new RZ will be confirmed closer to its local arrival in the first part of next year. But as a guide, the current entry-level RZ450e in Luxury spec costs around $120,000 before on-road costs. Go for the full-fat Sports Luxury and you can add $10,000 for a $130K MSRP.
Let’s take an educated guess and add a not outrageous five per cent price increase for this update which would bump the new RZ500e (to be offered in Luxury and Sports Luxury grades) past a $125K entry point and move the new RZ550e F Sport flagship close to $140K.
If that was the case, rivals will include the Audi Q8 e-tron (from $153,984), BMW iX (from $136,900), Genesis GV70 Electrified Signature ($125,858) and Polestar 3 (from $118,420).
Worth noting you could buy two examples of the Tesla Model Y Dual motor Long Range ($68,900) for the same money.
In this part of the market it’s fair to expect a healthy list of included features and the RZ doesn’t disappoint.
Aside from the performance and safety tech we’ll get to shortly, standard specification highlights include a 14-inch multimedia touchscreen, a digital instrument display, a dimmable panoramic roof, 14-colour ambient cabin lighting, 20-inch alloy rims, LED headlights, cornering lights and a 360-degree camera system.
There’s also synthetic leather trim (synthetic suede on F Sport), built-in nav, power-adjustable heated front seats, multi-zone climate control and more. Not bad.
The Range Rover Velar P400e's plug-in hybrid powertrain combines a 2.0-litre four-cylinder turbo-petrol engine with an electric motor to deliver 297kW of power and 640Nm of torque.
The Velar features an eight-speed auto transmission and is an AWD. With that optioned Terrain Response feature, it can do some mild off-road adventuring or tackle a trip to the ski-fields with relative ease.
Both versions of the new RZ are powered by dual permanent magnet synchronous motors, one in the front, one at the back, each producing 167kW and 269Nm.
Total output is 280kW for the 500e (up from 230kW in the 450e), with a little more juice released from the motor combination for the 550e at 300kW.
A single-speed transmission sends drive to both axles and the RZ550e F Sport features ‘Interactive Manual Drive’ designed to give the sensation of manual gear shifts in a BEV. More on that in the Driving section.
The official combined fuel-cycle consumption figure is 2.2L/100km and my real-world usage came out at 6.0L/100km after doing mostly open-road trips with some urban stuff thrown in.
I have charged it to full twice with a few (small) charging moments scattered in between as that’s been realistic for life this week.
Claimed pure electric driving range is 69km but expect closer to 50km in the real-world.
Based on my real-world consumption and the 69L fuel tank, expect a theoretical driving range of 1150km.
The only draw back with a PHEV is the charging element as you get the best economy if you charge it to full every time you drive, and that's not always realistic!
The P400e has a Type 2 CCS charging port, so you can hook it up to a fast charger. On a 50kW system you can go from 0-80 per cent in 30 minutes and on a 7.0kW system, you can go from 0-100 per cent in two-hours and 12-minutes.
On a standard domestic socket, expect to leave on overnight for a 0-100 per cent fill.
Land Rover recommends a minimum 95 RON premium unleaded petrol for the Velar.
The RZ500e and 550e are fitted with a 77kWh lithium-ion battery delivering a claimed (WLTP) range of 450 and 456km, respectively.
Claimed 10-80 per cent charge time, using its full 150kW DC fast-charge capacity, is 30 minutes or a handy three and half hours at maximum 22kW AC capacity.
Energy consumption on the combined (urban/extra-urban) cycle is 18.2kWh/100km (WLTP) for the RZ500e and 18.4 for the 550e.
Over several hundred kilometres of B-road and freeway running as well as pottering through slow-speed villages on the launch we saw an average of 19.3kWh/100km in the 500e and 20.1 in the 550e F Sport, which is pretty handy.
And the (very) good news is two AC charging cables, installation of a home charger and three years’ complimentary charging across the Chargefox network is included. Nice!
The P400e has a deep well of power to dip into and fantastic pick up when you need to overtake or get up to speed.
Like other plug-in hybrids I’ve sampled from Land Rover there's a little lag sometimes when you accelerate from a full stop but it’s not as pronounced in this model as others.
The back brakes seem to hold a couple seconds longer than they should and if you accelerate as you would in any other car, there is a ker-clunk sound and you shift forward in your seat until they release.
This was most noticeable in stop-start city traffic and to be fair might just be a quirk on our test car and not on the model as a whole.
The switch between the electric and petrol components is mostly smooth and the cabin is refined because it’s so quiet. Pretty much no external noise makes its way inside.
I did a trip with my father-in-law this week and he said riding in the back seat was smooth, comfortable and very quiet. In fact, he fell asleep not long after we left! A high compliment, indeed.
The wide windows and higher ride have ensure excellent visibility but you only get a reversing camera. Yes, it’s great quality and clear but a 360-degree view system should come standard on a large SUV like this, especially considering its price tag. That being said, the P400e is still pretty easy to park.
It’s a hefty machine at 2.1 tonnes, but Lexus says the RZ550e F Sport will accelerate from 0-100km/h in 4.4 seconds, with the 500e only marginally slower at 4.6sec.
In straight-line acceleration Lexus says front to rear power distribution varies between 60:40 to 100 per cent rear to suppress pitching and “produce a more direct acceleration feel”.
And the RZ is indeed quick. Apply your right foot at just about any speed and the car rockets ahead with satisfying enthusiasm.
The F Sport’s ‘manual’ mode allows you to shift through eight virtual ‘ratios’. Press the ‘M’ button on the console and bingo, you have slim steering wheel-mounted paddles to control them.
At anything above a light accelerator application you’ll feel a jolt on upshifts, but it’s rather unpleasant. Sure, you want some sense of a gear change, but you feel it in your core. Check out the video review to see how much it can shake you around.
A synthetic soundtrack Lexus refers to as the “BEV Sound”, vaguely echoing an internal combustion engine, is fed through the F- Sport’s audio system and it feels thin and brittle to our ears. Again, check out the audio sample in our video review to see if you agree.
You’ll hear the ‘revs’ rising on up and downshifts but there’s no physical accompaniment with the latter as far as we could sense.
Suspension is strut front with double wishbones at the rear and it’s been given a thorough revision in terms of dampers, springs and bushings in both the 500e and 550e F Sport, with the latter copping some additional fine-tuning in each of those areas.
We sampled 500e and 550e F Sport versions of the RZ on the launch drive in Southern Portugal, covering mostly Aussie-compliant roads with lots of bumps and ruts to deal with. And despite its hefty kerb weight the car copes with these imperfections well.
There’s also been some extra attention paid to body rigidity in this updated RZ, specifically reinforcement of upper sections of the nose and around the boot to keep the car more torsionally stiff.
In cornering the drive distribution ratio is between 80:20 front to rear to RWD-only, according to vehicle speed and steering angle, and the car feels composed and predictable.
The F Sport features the steer-by-wire system, using a yoke rather than a conventional steering wheel and the ratio is such that all you have to do is turn the wheel slightly to generate a response.
It’s smooth and progressive but quick at the same time. You soon become used to it.
While it's unusual to see a small yoke in your hands rather than a steering wheel, it means you have an uninterrupted view through to the instruments, which is a nice side benefit.
However, much like the Infiniti Q50’s system before it, there is no mechanical link between the driver’s hands and front wheels. Steering inputs are relayed by electric signals from a torque actuator to a control actuator.
So, while Lexus says “important feedback filters through without the unpleasant vibration effects of a mechanical connection”, and that’s true, by definition there is no road feel and the wheel feels numb from that point-of-view. Worth noting the mechanically steered 500e feels much the same.
Tyres are Dunlop SP Sport Maxx (235/50 fr - 255/45 rr) which grip hard and remain relatively comfy despite their short sidewall running on 20-inch rims.
One price you pay for the steer-by-wire system’s set-up is a substantial turning circle, so be ready for that.
Braking is by ventilated discs all around, which work nicely, and when you’re not using the manual mode in F Sport the steering wheel paddles allow movement through four levels of regenerative braking.
The most aggressive setting will slow you quite markedly but not to the level of ‘single-pedal’ operation.
Additional sound insulation includes an under-seat rear floor silencer, soundproofing in the door trims as well liberal use of damping sheets, foam, silencer pads, insulators and extra seals. And the car is super-quiet, even for an EV.
In terms of miscellaneous observations, the front seats on both versions remained comfortable and supportive over long stints behind the wheel (and yoke!).
Slow speed manoeuvring is assisted by a 360-degree overhead camera view with a translucent trace of the car in the centre, as well as a high-quality reversing camera. Vision across the car and through to the back is good, anyway, but the extra tech helps in the slow speed stuff.
There’s also a sensible mix of physical dials and on-screen controls and the touchscreen menus are easy to use. Especially handy when you’re racing to the function that turns off the intensely annoying over-speed warning.
The plug-in hybrid variant is not rated with ANCAP yet but features a good number of safety features, like blind-spot monitoring, driver attention alert, tyre pressure monitoring, rear collision warning, forward collision warning, AEB, DRLs, rear cross-traffic alert, lane keeping aid, traffic sign recognition, intelligent seatbelt warning, adaptive cruise control, reversing camera, as well as front and rear parking sensors.
It does miss out on lane departure warning and only has six airbags, which is low for a large SUV but all of the other safety tech seems well-tuned and not intrusive on everyday driving.
For any families, the Velar has ISOFIX mounts on the rear outboard seats plus three top tethers. You might get three seats installed if they’re not too big but two will fit best.
The RZ received a maximum five-star ANCAP assessment in 2022 scoring 80 per cent-plus results in all areas.
As you’d expect, a full suite of driver-assistance tech is onboard including auto emergency braking (AEB) with car-to-car junction, crossing and head-on functionality as well as pedestrian and cyclist detection, adaptive cruise, lane keeping assist, lane-departure warning, blind-spot monitoring, rear cross-traffic alert, driver fatigue monitoring, tyre pressure monitoring and more.
The airbag count runs to nine, including side curtains, knee bags for the driver and front passenger as well as a front centre airbag. There’s also multi-collision brake to minimise the chances of subsequent impacts after an initial crash and an auto emergency call function.
There are three top tethers for child restraints across the second row with ISOFIX anchors in the two outer positions. That’s a comprehensive safety package.
The Range Rover Velar comes with a five-year/unlimited km warranty and the battery is covered by an eight-year/ 160,000km warranty, which is a usual term for the class now.
There is a five-year capped-price servicing program which costs a flat $2100, or $420 per service, and is more affordable than a pay-as-you-go option.
Servicing intervals are very reasonable at every 12 months or 20,400km, whichever occurs first.
You also get five years roadside assistance through Assist Australia as a part of your servicing plan.
The RZ is covered by Lexus Australia’s five-year/unlimited km warranty and there’s an eight-year/160,000km warranty on the drive battery, which is in line with the RZ’s key competitors.
Recommended maintenance interval is 12 months/15,000km, which is relatively brief for an EV.
Capped-price servicing is yet to be confirmed, but for reference the outgoing 450e runs to $395 for each workshop visit up to a maximum of five years/75,000km. That’s sharp pricing in this part of the market.
The RZ also qualifies its owner for ‘Platinum Electrified’ benefits under the ‘Lexus Encore’ ownership program. That means everything from access to “exclusive offers and events” to a complimentary service loan car, five years’ roadside assistance, valet parking at selected locations, airport lounge access and (heaps) more, including the charging benefits mentioned earlier. Hard to argue with that.