Lexus ES250 vs Peugeot 408

What's the difference?

Since day one Lexus has aimed to prise buyers away from the limpet-like grip of traditional luxury car players. Conventional marketing wisdom says consumers buy brands, with the actual product a secondary consideration. 

The updated ES has the value, efficiency, safety, and driving refinement to again challenge the establishment. Amazingly, the ownership package, specifically the warranty, is starting to lag the market. 

But for open-minded premium buyers this product is worth a look before following a well-worn brand path. And if it was my money, the ES 300h Luxury with Enhancement Pack is the range sweet spot for value and performance.

The Peugeot 408 GT Hybrid delivers heaps of standard equipment and safety tech for what is now a much more competitive price. It’s also super fuel-efficient, which is right for these turbulent times, offers thoughtful practicality and the wagon-fastback-crossover-SUV look is striking. The price paid for miserly economy is a peaky small-engine powertrain and the ownership promise isn’t exactly class-leading. That said, it deserves consideration in its new, even more competitive under $60K mid-size SUV segment.

From shy wallflower to life of the party, the Lexus ES was given a comprehensive design makeover for its seventh generation.

A dramatic, angular exterior incorporates signature elements of the Lexus brand's distinctive design language including an unmissable ‘spindle grille’, but is still clearly recognisable as a conventional 'three-box’ sedan.

The jagged headlights now feature ‘tri-beam’ LEDs on F Sport and Sports Luxury grades, adding an extra air of purpose to an already bold face. And the grille on Luxury and Sports Luxury models is now made up of multiple L-shaped elements, mirrored across the top and bottom sections, then finished in gunmetal grey for a close to 3D effect.

The ES is offered in 10 colours - ‘Sonic Iridium’, ‘Sonic Chrome’, ‘Sonic Quartz’, ‘Onyx’, ‘Graphite Black’, ‘Titanium’, ‘Glacial Ecru’, ‘Radiata Green’, ‘Vermillion’ and ‘Deep Blue’ with two other shades reserved for the F Sport only - ‘White Nova’ and ‘Cobalt Mica.’

Inside, the dash is a mix of simple sweeping surfaces contrasted by a flurry of activity around the centre stack and instrument cluster.

Located roughly 10cm closer to the driver, the new multimedia screen is a 12.3-inch unit with touch functionality, a welcome alternative to the laggy and inaccurate Lexus ‘Remote Touch’ trackpad set-up. Remote Touch remains, but my advice is to ignore it and use the touchscreen.

The instruments sit in a deeply hooded binnacle with buttons and dials on and around it. Not the sleekest design in the segment and passable only from an ergonomic point-of-view, but the overall feel is suitably premium.

Peugeot Design Director Matthias Hossann has been guiding the brand’s look and feel since 2020 and the result is a recognisable approach across the range with enough flexibility to give each model its own personality.

Recurring themes include the dramatic, fan-like grille with body-colour elements, narrow angled LED daytime running lights (DRLs) slicing through the outer edges of the nose and sinister tapered headlights set into the front corners.

The rear end maintains the visual drama with a stacked, angular treatment sectioning off the ‘Claw Effect’ LED tail-lights (the Peugeot brand mark is a Lion), chamfered mid-section and chunky bumper.

And among what increasingly feels like a mass of same-same newcomers the 408’s sloping turret and high, wide haunches give the car a distinctively sporty fastback look.

The interior is classy and clean although the almost uniformly grey colour palette is unrelenting.

The two-tier dash adds visual interest and a combination of sweeping curves and clean, straight lines around the cabin lift the tone. Nappa leather trim with the ribbed seat centre panels using perforated hide also looks classy.

But then we come to the ‘iCockpit’ instrument display and steering wheel combination. It’s based on the idea that reducing the size of the steering wheel and lowering its position while flattening its top and raising the location of the instrument binnacle is a better solution than the traditional look-through-the-steering wheel approach.

It doesn’t work for everyone and it doesn’t work for me. As noted in previous Peugeot reviews, after more than a decade in existence various members of the CarsGuide editorial staff continue to struggle with the arrangement, while others love it. 

For me, the wheel feels too low, yet the top of it obscures the lower part of the instrument panel. While it may work well for others I see it as the answer to a question no one was asking.

An overall length just under 5.0m long shows how much the ES and its competitors have crept up in size over recent generations. The Merc C-Class is more a mid-size car than the compact sedan it once was, and at nearly 1.9m wide and standing a bit over 1.4m tall the ES more than matches it for space.

There's plenty of room up front, the car feeling open and spacious from behind the wheel, thanks in part to the low sweep of the dash. And the rear is just as commodious.

Sitting behind the driver's seat set for my 183cm (6'0”) position I enjoyed good leg and toe room, with more than enough headroom, despite inclusion of a tilt and slide glass sunroof on all models.

Not only that, entry to and egress from the rear is a breeze thanks to a large aperture and wide opening doors. And while the back seat is best for two, three adults across is do-able without too much pain and suffering for short to medium journeys.

Connectivity and power options are plentiful with twin USB ports and a 12-volt socket front and rear. And storage starts with two cupholders in the front centre console, and another pair in the fold-down rear centre armrest.

If the remote touch system was (deservedly) given the boot, there would be room for extra oddments space in the front console.

The front door pockets are adequate rather than large (smaller bottles only), the glove box is modest, but the storage box (with padded armrest lid) between the front seats is more generous.

There are adjustable air vents for rear passengers, which you'd expect in this category, but are always a plus none-the-less.

The rear door pockets are okay, except the opening is relatively slim so bottles are a struggle, but there are map pockets on the back of both front seats as another bottle option.

Important to note that while boot space is decent at 454 litres (VDA) the rear seat doesn't fold. At all. A lockable ski port door sits behind the rear armrest, but the lack of a split-folding back seat is a significant practicality compromise.

A reasonably high loading lip into the boot isn't great, either, but there are tie-down hooks to help secure loose loads.

The Lexus ES is a no-tow zone and a space-saver spare is your only flat tyre option.

At close to 4.7m long, around 1.9m wide and a bit less than 1.5m tall with a 2790mm wheelbase, the 408 sits in the middle of the typical mid-size five-seater footprint.

Ample room in the front, although the lower section of the two-tier dash protrudes a fair way towards the driver and front passenger and the centre console is broad so it feels snug rather than airy.

Storage includes generous door bins with room for larger bottles, a lidded (and illuminated) bin between the seats that doubles as a centre armrest, two cupholders in the console with an oddments tray ahead of them and a decent glove box with an extra pocket built into the lid.

Switching to the rear, sitting behind the driver’s seat set for my 183cm position, there’s loads of leg- and headroom and enough width for three adults when required and more than enough for a trio of up to mid-teenage kids. Centre rear is less of a short-straw position, too, thanks to a relatively low and flat central tunnel.

The lack of a fold-down rear centre armrest is a miss mainly because it means there are no cupholders in the rear. But there are decent door bins with a space for smaller bottles, netted map pockets on the front seatbacks and a storage cubby at the back of the front centre console.

Speaking of which, individual air vents in the back of that console are a welcome addition.

 The boot is large for the class at 508 litres (VDA) with the rear seat upright and 1583 litres with the 60/40 split-folding backrest folded down. The power tailgate (with foot sensor and pedestrian detection) also makes life easier.

Other thoughtful touches include four load tie-down anchors, a netted pocket on the right-hand side, elasticised straps on the left-hand side, specific lighting and a pair of bag hooks.

Power and connectivity options include two USB-C sockets, a 12-volt outlet and a wireless phone charging pad in the front, another two USB-Cs in the back and a second 12V plug in the boot. So no problems with charging capacity for phones and other devices.

Maximum braked trailer towing capacity is a useful 1300kg (750kg unbraked) but we have to put a big black mark against provision of a repair/inflator kit rather than a physical spare. Not good enough for the Aussie market. 

The previous plug-in version of the current 408 Hybrid was a 1.6-litre, turbo-petrol, four-cylinder paired with a relatively large electric motor and cost-of-entry sat at $67,990, before on-road costs.

A shift to this car’s mild-hybrid powertrain, built around a 1.2-litre, turbo-petrol, three-cylinder engine matched up with an appreciably smaller battery and electric motor coincided with a 15 per cent ($10,000) price reduction to $57,990, BOC.

Convenience or consequence? Either way, it’s opened up a new competitive set with the focus shifting from the likes of the Lexus NX, Mazda CX-60 PHEV and Volvo XC60 to a fresh batch of sub-$60K rivals.

Think Honda CR-V e:HEV RS ($59,900, drive-away), Hyundai Tucson AWD 1.6 Hybrid Premium ($58,350, BOC), Kia Sportage GT-Line HEV FWD ($57,370, BOC), Nissan X-Trail Ti e-Power 5 seat AWD ($58,215, BOC), Subaru Forester AWD Hybrid Touring ($55,990, BOC) and the Toyota RAV4 XSE Hybrid AWD ($59,015, BOC).

Suddenly the Peugeot’s included features list sits in a new context and aside from the performance and safety tech we’ll get to shortly, standard equipment highlights include dual-zone climate control air, full-grain Nappa leather seat trim, a leather-trimmed (heated) steering wheel, Alcantara door trim, 3D satellite navigation and 10-speaker 690-watt Focal audio (with digital radio) as well as wireless Android Auto and Apple CarPlay.

Then there’s power-adjustable driver (eight-way) and front passenger (six-way) seats that are also heated with a ‘multi-point’ massage function, keyless entry and start, a 10-inch digital 3D instrument panel, a 10-inch multimedia touchscreen, auto LED matrix headlights, eight-colour ambient lighting, chrome trimmed pedals, a power tailgate, heated power-folding exterior mirrors, a panoramic glass sunroof, 19-inch alloy wheels, auto rain-sensing wipers and more. 

Then you can add over-the-air updates, access to remote services via the ‘MyPeugeot’ app and ‘Ok Peugeot’ voice recognition.

That’s an impressive basket of fruit for an under-$60,000 car. 

The ES 250 is powered by an all-alloy, 2.5-litre, naturally aspirated (A25A-FKS) four-cylinder engine featuring DVVT (Dual Variable Valve Timing) - electrically actuated on the intake side, and hydraulically on the exhaust side. It also uses a combination of direct and multi-point fuel-injection (D-4S).

Maximum power is a handy 152kW at 6600rpm and peak torque of 243Nm is available between 4000-5000rpm, with drive going to the front wheels via an eight-speed automatic transmission.

The 300h features a modified (A25A-FXS) version of the same engine using the Atkinson combustion cycle which plays with valve timing to effectively shorten the intake stroke and lengthen the expansion stroke.

The down-side of this set-up is a loss of low-end power, while the up-side is improved fuel efficiency. Which makes it perfect for a hybrid application where an electric motor can make up for the low-end shortfall.

Here, the result is a combined output of 160kW, with the petrol engine producing its peak power (131kW) at 5700rpm.

The 300h's motor is a permanent magnet synchronous type producing 88kW/202Nm, and the battery is a 204-cell nickel-metal hydride type with a capacity of 244.8 volts.

Drive again goes to the front wheels, this time via a continuously variable transmission (CVT).

The Peugeot 408 Hybrid is powered by a 1.2-litre, turbo-petrol, three-cylinder engine producing 100kW at 5500rpm and 230Nm at 1750rpm.

This compact, all-alloy, direct-injection unit works in concert with a single 15.6kW/51Nm 48-volt electric motor integrated into the six-speed dual-clutch auto transmission and energised by a 0.9kWh lithium-ion battery.

Drive goes to the front wheels only and Peugeot claims a 0-100kmh sprint time of 9.4 seconds.

Hyundai's official fuel economy figure for the ES 250, on the ADR 81/02 - urban, extra-urban cycle, is 6.6L/100km for the Luxury and 6.8L/100km for the F-Sport, the 2.5-litre four emitting 150 and 156g/km of C02 (respectively) in the process.

The official combined cycle fuel economy figure for the ES 350h, is just 4.8L/100km, the hybrid powertrain emitting only 109g/km of C02.

While the launch program didn't allow us to capture real-world (at the bowser) figures we did see a dash-indicated average of 5.5L/100km in the 300h, which is brilliant for a car in this class, weighing in at 1.7 tonnes.

You'll need 60 litres of 95RON premium unleaded to fill ES 250's tank and 50 litres to brim the ES 300h. Using Lexus figures that equates to a range of a little less than 900km in the 250 and just over 1000km in the 350h (900km using our dash-indicated number).

To further sweeten the fuel economy equation Lexus provides an Ampol/Caltex five-cents-per-litre discount as a permanent offer via the Lexus app. Nice.

The 408 Hybrid’s official fuel consumption figure for the combined (urban/extra-urban) cycle is 4.5L/100km, the 1.2L turbo triple emitting 102g/km of CO2 in the process.

And it’s important to point out those official (ADR 81/02) numbers for the 408’s consumption and emissions are better than any of the direct competitors we’ve called out in the ‘Price & Features’ section above. 

Over a week of mainly city and suburban running with some freeway sections thrown in, we recorded an on-test average of 6.0L/100km. Impressive for a mid-size crossover weighing in at a bit over 1.4 tonnes.

Brim the 52-litre tank with minimum 95 RON premium fuel (ethanol blends not recommended) and using our real-world figure you can expect a handy driving range in excess of 860km.

The first thing you notice behind the wheel of this ES is how extraordinarily quiet it is. Sound absorption materials are stuffed all around the body. Even the engine cover has been designed to keep the decibels down.

And ‘Active Noise Control’ (ANC) uses the audio system to generate “noise-cancelling waves” to suppress mechanical clatter from the engine and transmission. The car is eerily EV-like in it's pin-drop interior tranquility.

We focused on the ES 300h for the launch drive, and Lexus claims 0-100km/h 8.9sec for this version of the car. It feels every bit that quick, but the engine ‘noise’ and exhaust note are like the humming of a distant bee hive. With thanks to Daryl Kerrigan, how's the serenity?

Around town the ES is composed and supple, absorbing pock-marked urban irregularities with ease, and on the freeway it feels like a hovercraft.

Lexus makes a lot of noise about the torsional stiffness of the ‘Global Architecture-K’ (GA-K) platform sitting under the ES, and it's clearly more than hot air. Through twisting B-roads it remains balanced and predictable.

Even in non-F-Sport variants the car points nicely and will steer accurately on the throttle through constant radius corners, with only modest body roll. The ES doesn't feel like a front-wheel drive car, with neutral handling up to an impressively high limit.

Luxury and Sports Luxury grades are offered with three drive modes - ‘Normal’, ‘Eco’ and ‘Sport’, tweaking engine and transmission settings for economy or a more spirited drive.

ES 300h F Sport variants add three more modes - ‘Sport S’, ‘Sport S+’ and ‘Custom’, further revising engine, steering, suspension and transmission characteristics.

Despite all the tuning options, road feel is not the ES's strongest suit. Dialing in sportier modes will add steering weight but no matter what the setting, the connection between the front wheels and the driver's hands is less than intimate.

The CVT auto suffers some of that disconnect between road speed and revs, the engine moving up and down the rev range in search of the power/efficiency sweet spot. But wheel-mounted paddles allow for manual shifting through pre-set ‘ratio’ points, and that option works nicely if you prefer to take the reins.

And when it comes to slowing down the ‘Auto Glide Control’ (ACG) system smooths out regenerative braking when you're coasting to a stop.

The conventional brakes are ventilated (305mm) discs at the front and a solid (281mm) rotor set-up at the rear. Pedal feel is progressive and outright stopping power is strong.

Random notes: The front seats are great. Super-comfortable yet neatly bolstered for secure location. The F Sport's chairs, even more so. The new multimedia touchscreen is a winner. It looks good and menu navigation is agreeably straight forward. And the digital instrument cluster is similarly clean and clear.

Even with the assistance of an electric motor in the transmission and a turbo on the engine, a 1.2-litre, petrol three-cylinder powering a more than 1.4-tonne five-seat car is always going to be an interesting equation.

And in practice, although the small triple’s peak torque (230Nm) is available from just 1750rpm it lacks the smoothness of larger capacity mild- and full-hybrid combinations. Especially at slower speeds, the powertrain feels relatively edgy and agitated.

Outright acceleration is fine (claimed 0-100km/h acceleration is 9.4sec) with decent mid-range pulling power for confident overtaking or decisive lane changing (a 15.6kW/51Nm boost from the motor playing its part) and the dual-clutch auto is a more polished example of what can be a fractious device. 

But engineering and tuning for maximum fuel-efficiency has an impact on driveability. For example, we noticed the air-conditioning system’s output softened at standstill, which led to some mild window fogging in stop-start traffic on a particularly humid morning. Haven’t seen that for a while. 

The strut front, torsion beam rear suspension delivers a compliant ride and responsive handling in classic Peugeot fashion. The steering in particular points accurately and provides good road feel. 

We’ve covered the intricacies of the i-Cockpit instrument and steering wheel configuration in the Design section as its shortcomings (for me, anyway) are more ergonomic than dynamic.  

The car is relatively quiet, thanks in part to sound-dampening acoustic glass and the Michelin e.Primacy tyres (205/55) which also grip persistently if you decide to slice through your favourite set of corners. Push the engine harder and it’s revvy note and exhaust rasp will start to make their presence felt. 

Regenerative braking is helpful and the physical brakes (ventilated discs and the front and solid rotors at the rear) are nice and progressive.

The front seats are firmer than the Peugeot norm but remain comfy enough and they provide enough side support to keep you well located. 

Despite the swoopy fastback design, all-around vision is surprisingly good and an overall length under 4.7m, an acceptable 11.2m turning circle, a clear reversing camera and a 360-degree camera view make parking straightforward. 

The 408 has a maximum five-star ANCAP rating from assessment in 2022 with active crash avoidance tech including Auto emergency braking (AEB) with pedestrian and cyclist detection, junction assist and backover detection, adaptive cruise (with stop & go), lane departure warning and lane keep assist, blind spot monitoring, traffic sign recognition, a 360-degree camera view, rear cross-traffic alert, forward collision warning, driver fatigue monitoring and tyre pressure monitoring as well as front and rear parking sensors.

If a crash is unavoidable there are six airbags onboard (front, front side and side curtain) but a front centre bag is notable for its absence. 

On the upside, an active bonnet helps protect impacted pedestrians from striking hard engine parts under the bonnet and multi-collision brake minimises the chances of subsequent impact after an initial crash. 

For child seats there are three top tether points across the second row with ISOFIX anchors in the outer positions.

From the time it arrived in the Australian market just over 30 years ago Lexus has made the ownership experience a key differentiator for the brand.

Its focus on post-purchase benefits and ease of servicing shook the established luxury players out of their button-backed leather lounge slumber and into a new aftersales mindset.

That said, the Lexus standard four-year/100,000km warranty is some way off luxury newcomer, Genesis, as well as traditional heavyweights Jaguar and Mercedes-Benz, all at five years/unlimited km.

Yes, Audi, BMW and others are at three years/unlimited km, but the game has moved on for them, too. Plus, the mainstream market standard is now five years/unlimited km, with some at seven, even 10 years.

On the other hand, the ‘Lexus Encore Privileges’ program provides 24-hour roadside assistance for the duration of the warranty, as well as, “dining, hotel partnership and luxury lifestyle experience offers exclusive to owners of new Lexus vehicles.”

The Lexus Enform smartphone app also offers access to everything from real-time advice on events and the weather to nav destinations (restaurants, businesses, etc), and more.

Service is scheduled every 12 months/15,000km (whichever comes first), and the first three (capped price) services for the ES are $495 each.

A Lexus loan car is provided while your pride and joy is in the workshop, or a pick-up and return option (from home or office) is available. You'll also receive a complimentary wash and interior vacuum.

Peugeot covers the 408 with a five-year/unlimited kilometre warranty, which is perilously close to sub-par in 2026 with an increasing number of brands at seven, eight and up to 10 years conditional. The battery warranty at eight years/160,000km matches the market.

Roadside assistance is included for five years, service is recommended every 12 months/15,000km and pre-paid servicing is offered across three-, four- or five-year plans, with the latter at $2070.

That’s a not insubstantial average of $414 per workshop visit, which Peugeot says will save you $893 compared to pay-as-you-go over the five years.

For reference, a Toyota RAV Hybrid service for any of the first five years is $260, although pricing steps up after that period.

Peugeot has a well established network of 31 dealers mainly covering major cities and key rural areas, primarily on the east coast. Currently, no presence in Tassie or the Northern Territory, while Perth and Adelaide are the only representation in WA and SA.