Lexus ES350 vs Subaru Outback

What's the difference?

The ES300h is outstanding in terms of ride comfort, refinement and value. If you’re looking for a true driver’s car then a Lexus RCF is probably a better tree to bark up, but if you’re looking to ferry passengers in a serene, prestigious and fuel-efficient way, then look no further.

Over 30 years and seven generations of Outback in Australia, the latest might just be the best.

It's great to drive, even better to sit in, very easy to live and willing to go further than most equivalent large SUVs at its price point.

The styling is definitely divisive, with purists unhappy that the long, crossover wagon silhouette is now gone, but what we have instead is a family-friendly vehicle that pleases on so many fronts.

We’d go as far as saying the latest Outback might be the most-rounded Subaru currently available, and great value to boot. And the base AWD is all the SUV most people will ever need.

That’s not bad for something this square!

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

If you think all Lexus models look the same, then pop on over to the Audi, BMW or Benz websites and take a peek at their line-ups. Compared to the ranges from those prestige car makers, Lexus models look wildly different from each other.

Opinions on that ‘Spindle Grille’ are as polarising as views on politics or religion. Personally, I like how upfront and brave the grille design is, but what seems odd to me is that it’s almost as if this was the only place on the exterior where designers were allowed to be a bit adventurous. The rear, while cleanly styled is a bit plain. The bottom just doesn’t match the face.

The ES300h’s roofline in side profile is beautiful as it sweeps almost fastback-style to the boot lid. Again, not the most dramatic styling, but it’s still pleasing in the sense that the design flows well together. The same can be said for the fit and finish – the panel gaps are near-perfect.

This perfection continues into the cabin, where the materials and craftsmanship matches German prestige rivals in places (the door handles, leather and digital instrument cluster, for example), only to be let down in other areas which disclose its budget Toyota family connection (the air vents, steering wheel and display screen).

The ES300h’s interior design isn’t going to set everybody’s world on fire, but there will be those who adore its asymmetrical styling with different textured surfaces that fold, swoop and jut up against each other’s space. Have a look at the images, they’re of the Sports Luxury which sits above the Luxury in the two grade line-up.

The differences visually between the grades is minimal. The Luxury has 17-inch alloys, while the Sport Luxury has 18-inch.

New colours for this generation include Glacial Ecru (the sandy hue of our test car in the images) and Radiata Green. Both grades’ interiors come in a variety of colour schemes, including Black, Chateau, and Topaz. Exclusively for the Sport Luxury cabin is Rich Cream, too. The Sports Luxury steering wheel has wood trim.

One of the more peculiar design elements of the ES300h’s cabin design, and there are a few, are the controls for the drive modes and traction control. They sit like horns on the instrument cluster hood, as though these are things the driver will constantly be reaching for, when in reality most people will never touch the traction control button.

A new-generation car means new foundations, and the ES300h is built on the GA-K platform which underpins the Camry. The platform is part of the latest global architecture which Toyota and Lexus are now using to build its vehicles.

The dimensions of the ES300h, if you’re wondering if it will fit in your garage, are just under 5.0m long, 1.9m wide and 1.4m tall.

Historically, Subarus have majored on quirky. Kooky even.

Think buggy ‘60s 360, offbeat ‘70s 1400, spacey ‘80s Vortex, futuristic ‘90s SVX, Alfa-esque ‘00s pre-facelift Tribeca, dorky ‘10s Exiga. We’d go as far as saying that, in over 50 years, only a handful of Subarus have looked normal. And they’ve all been boring. The beautiful ones, like the original Impreza and ’03 Liberty, remain stunning.

But quirkifying such an important family car in such a mainstream segment… that's risky. And we’re here for Subaru’s boldness. We just wish the details weren’t so heavy handed.

Longer, larger and wider than any prior version, the 2026 Outback shares its stretched platform architecture fundamentals with the latest Forester. That’s a sound basis. Just Xeroxed up by about 15 per cent. Boxy shape. Deep glass. Wide doors. Form over function. This is designed to make life easier.

What you make of the Wilderness’ visual features, including the dramatic grille mask, SUBARU wording, painted trim surrounds and cladding-on-cladding (behold the Kia Tasman-like squared-off wheel arches if you dare) is down to personal taste. Eyes be damned! But it is so far-removed from the elegant grace of the previous model that some might argue a name change would at least have silenced the critics.

On the other hand, besides fugly being in Subaru’s DNA, a large, lofty SUV is probably truer to the term ‘outback’ than on any elegant and gracefully-silhouetted crossover wagon.

Meanwhile, the polar opposite is true inside. It’s as if the interior designers strove for class and calm, with none of the exterior styling’s visual noise, or shouting in the Wilderness’ case. And there is the luxury of space, vision and scope, further enhancing the Outback’s usefulness. That you can’t see the body, just the beautiful cabin’s detailing, elevates this Subaru. Unlike in the previous model, which was a bit of an aesthetic and functional mess inside.

The Lexus ES300h is a five-seater sedan, but it’s really designed to sit two comfortably in the back, given there’s a large driveshaft hump in the floor and that the outboard seats are divided by a fold-down control panel/armrest.

Legroom in the second row is ample. I’m 191cm tall, and I had about 20mm of space between my knees and the seat back when it was in my driving position. Headroom gets tight with that sloping roofline, but there’s just enough space thanks to the low hip point of the rear seats.

Cabin storage is excellent. The fold-down armrest for the rear seats has a storage tray and two cup holders, while the large centre console bin has a lid which can open towards the driver and also to the front passenger (I spent way too long marvelling at how it worked). There are two cup holders up front and decent-sized door pockets, too. Those rear doors open wide for easy exit and entry.

Boot space in the ES300h is 454 litres (VDA), beating the 410-litre cargo capacity of the BMW 530e.

As far as power outlets, you’ll find two USB chargers in the centre console storage bin and a Qi wireless charging pad, which is awkwardly situated making it hard to place larger phones onto it.

Like all Subarus, Outback boasts an interior of very high-quality craftsmanship, being built beautifully, without rattles or noises or jarring trim.

The difference here is just how pleasingly practical and easy yet attractive this environment is, from the moment that wide-opening door opens and shuts with reassuring solidity.

The horizontal dash layout departs from the Tesla-aping portrait screen domination of the previous generation, banishing the confusing and annoying virtual controls for real, live buttons.

But is it original? The layered presentation is attractive and distinctively Toyota… err Subaru. Yes, it is very much like the bZ4X-based Solterra EV’s look inside.

That’s no bad thing from an ergonomic point of view. The driving position is flawless, the seat/wheel/controls relationship considered and the placement of the climate controls, audio system, armrest and storage just right. We’re also happy to see the instrumentation display incorporate various visual choices, including digital analogue-style dials.

A particular callout goes to the slick and speedy tactility of the brand’s latest touchscreen, as well as the (again suspiciously Toyota-like) interface and graphics layout. It’s all good.

But wait, there’s more. The Outback’s front seats are claimed to be particularly supportive, and after hours in them on and off road, they seem to exceed Subaru’s claims.

If you’re expecting regular mid-sized SUV levels of interior space, be prepared to be impressed, because the Outback’s extra sizing outside seems to be multiplied inside. There’s ample room for long legs, big hats, broad shoulders and buxom hips. It all works so well. This is probably one of the best modern SUV interiors, period. Nothing seems to have been overlooked.

The rear seat is presented to please, too. It can seem a bit drab in the lower-line models, but the same virtues of effortless entry/egress, seat comfort, convenience (including air vents, USB ports, cupholders and armrest placement) apply. We noted the lack of road/tyre noise intrusion at speed, too.

Behind the very sixties Jeep Wagoneer-looking rear is a vast luggage area, complete with a low floor, remote rear-seat folding handles, 12V outlet and quality trim. And that space-saver spare lives underneath.

Subaru seems to have designed this car from the inside out and it shows. A rare 10/10 from us.

Bad news first. Model-for-model, each Outback grade is now up around 10 per cent compared to the preceding, more petite and prettier version.

This means the cheapest of the five grades available, known simply as AWD (for all-wheel drive – this seems almost redundant for a non-BRZ Subaru), now kicks off from $48,990. All prices here are before on-road costs.

This includes a proper off-road mode, climate control, synthetic leather trim, a 12.1-inch multimedia touchscreen, 12.3-inch electronic driver display, wireless Apple CarPlay and Android Auto, a powered tailgate, heated front seats with powered driver’s side, chunky roof rails, 18-inch alloy wheels (with a space-saver spare – thank you, Subaru), nine airbags and comprehensive Advanced Driver Assist Systems (ADAS). Check out the safety section further down for more details.

Notes for the facelift, Subaru: Why can’t the base grade come with cloth, rather than clammy vinyl seats?

Next is the AWD Premium. From $53,490, that’s a reasonable ask given its 360-degree-view monitor, sunroof, heated steering wheel, powered front passenger seat and 12-speaker Harman Kardon audio upgrade.

The $56,990 AWD Touring includes Nappa leather, ventilated front seats, heated outboard rear seats, a wireless charger, active lane change, auto-fold mirrors with self-dipping in reverse (c’mon, this should be standard) and glossier alloys.

From here, we’re in new Wilderness territory. Two grades, AWD Wilderness from $59,690, adding more cladding upon cladding, a turbo engine, electronic dampers, 20mm extra ride height, broader 'X-Mode' off-road functionality, a wireless charger, claimed water-repellent seat trim, different fog lights, black-finish alloys and more.

But, strangely, you lose the sunroof, sat-nav, 360-degree view monitor and premium audio. Subaru demand another $3.0K to restore these in the flagship AWD Wilderness Apex from $62,690.

Still no cloth option, though. We’d like a new base AWD grade with the Wilderness mechanical gear and stance but not the extraneous cladding and visuals, and with coarse fabric upholstery, manual option and steel wheels. Maybe call it Leonie for fun.

Anyway, does new Outback represent value for money? One of its main rivals in the sparsely-populated five-seater large SUV class (most have three rows) is the Mazda CX-60. The AWD slots nicely between the slightly cheaper but very basic four-cylinder RWD Pure yet undercuts the much-sweeter six-cylinder AWD version, so we’d answer that with a yes.

Furthermore, when you tally up all that extra stuff, size and space, today’s out-stretched Outback offers comfortably more over the old model than that modest 10 per cent price hike suggests. That’s a win for buyers.

As mentioned at the start of this review, in Australia the Lexus ES is only available with one powertrain variant – a petrol-electric hybrid.

This combines a 2.5-litre four-cylinder petrol engine making 131kW and 221Nm, with an electric motor that has an output of 88kW and 202Nm. The 244.8V nickel-metal hydride battery has been moved from under the boot floor in the previous generation car to under the rear seats, so it no longer eats into the cargo space.

The ES300h isn’t a plug-in hybrid, so battery recharging is done through regenerative braking.

A continuously variable transmission means seamless and smooth low-speed driving using just the motor, but under heavy acceleration the engine activates and you’ll hear that drone associated with CVTs.

Don’t worry, Subaru traditionalists. The Outback again offers a pair of horizontally-opposed 'boxer' four-cylinder engines.

The regular Outback versions are powered by a 2.5-litre twin-cam petrol unit making 137kW of power at 5800rpm and 254Nm of torque at 3700rpm.

Choosing the Wilderness switches things up to a 2.4-litre turbo version delivering 194kW at 5600rpm and 382Nm between 2000rpm and 3600rpm.

Both use a continuously variable transmission (CVT) with eight artificial ‘steps’ for a more torque-converter-like experience. Sadly, no manual gearbox is available.

This is the point of a hybrid, right? To save fuel? The electric motor can power the car at low speeds around car parks or in bumper-to-bumper traffic, and I found that after 104km of both urban and open road usage my fuel economy in the Sport Luxury was 5.4L/100km.

Lexus’ official combined fuel economy figure for both the Luxury and Sports Luxury is 4.6L/100km.

Where the Outback regresses compared to its predecessor is efficiency.

Despite a modest 50kg weight rise, the substantially boxier shape is probably behind the jump in petrol consumption, rising nearly one litre per 100km compared to before in the Outback, and nearly 2.5L/100km, in the heavier Wilderness.

The combined average consumption figure for the 2.5-litre naturally aspirated engine is 8.1L/100km, for a carbon dioxide emissions rating of 183 grams per kilometre, while the 2.4-litre turbo manages 9.7L/100km and 228g/km.

Filling the 63L tank, expect an average range of about 777km in the former and just 648km in the latter. Surely, the coming hybrid version can’t arrive soon enough for some buyers.

At least both engines can drink from the standard 91 RON petrol bowser.

So much for the theory. Out in the real world, over a solid day's testing on- and off-road, we found there was a difference of about 1.5L/100km between the regular Outback and the Wilderness.

Two words: quiet and comfortable. Well that’s three words, but that sums up the ES300h on the road. Yes, rivals may have intelligent adaptive air suspension and leather made from free range cows, and they are supremely tranquil and sumptuous places, but challenging them is this ES300h.

Even with its regular shock absorbers and steel-spring suspension, the ride was outstanding for its comfort and composure on the worst roads Sydney could throw at it over the week we tested the car.

Front and rear seats were supportive and comfortable over long distances, too. From a driver’s perspective the experience was serene – this was an easy and relaxing car to pilot.

I’m not a huge fan of petrol-electric hybrid powertrains, but it suits the seamless personality of the ES perfectly, adding to the smoothness of the ride as it slipped silently through traffic.

Just don’t expect the ES300h to be rewarding from a dynamic driving perspective. The steering was heavy and a little numb, and while the handling was good, I felt disconnected from the road. And whenever I needed to move quickly the combustion engine would splutter to life and the CVT would begin to drone.

Confession time. The way the previous Outback drove was profoundly disappointing. The steering felt numb, the ride was too stiff and the car seemed wilfully dull, even in the turbo version.

The contemporary Forester ran rings around it for driving pleasure and refinement.

But Outback number seven is completely different and maybe the best-driving non-WRX Subaru right now.

From the moment you climb on board this vast SUV from Japan, everything feels right – from the driving position and relationship with the controls, to the sumptuously comfy seats and commanding vision all around the vehicle. That’s a promising start.

Push the ignition and press the accelerator down, and the regular Outback 2.5 quietly, gently and smoothly moves off the line. With modest power outputs and a CVT, you might expect it to also sound revvy and droney, but instead the acceleration is strong and throttle responses determined.

We drove this for hundreds of kilometres and never found the performance lacking, even with three adults and their luggage on board, over hilly and even mountainous terrain. Yes, it is possible to have the CVT whining at higher revs, but not within normal driving scenarios. And the quietness and lack of road noise is terrific.

Moving to the Wilderness and its 2.4-litre turbo powertrain, the same applies, except of course mid-range response is significantly faster and with a slicker, more refined delivery. Press and squirt, this is deceptively quick, because the car does a great job in masking the noises and vibrations that working an SUV hard often elicit.

We only wish there was a manual option. With steel wheels, cloth seats and without the Wilderness' add-on gargoyles.

Now, it also seems that Subaru listened and learned from previous criticisms like ours, because the Outback’s newly-redesigned steering is a delight, with a natural, fluent sweetness and ease that’s combined with a pleasing connection with the driver.

The result is balanced, controlled and enjoyable handling, backed up by reassuringly stable road holding. We drove through a sudden, heavy thunderstorm near Bathurst on the first, hot summer afternoon’s test session, and found the Outback to feel impervious through such slippery conditions.

And this all largely applies to the Wilderness as well, though its 20mm-higher ground clearance (to 240mm) makes it feel a little less composed than the glued-down regular model. Both feature a stiffened body and multi-link rear suspension, by the way.

More progress has been made in the Subaru’s ride quality. Gone is the hard suspension feel, for a far-less firm set-up, providing a comfortable and queasy-free ride. Even in the loftier Wilderness. This is the model’s greatest advance over its predecessor and we’re extremely happy with the outcome.

Finally, other than the at-times over-eager driver-attention monitor, the ADAS tech provides subtle, nuanced back-up, with quiet lane-keep intervention, a measured adaptive cruise-control functionality and no jarring buzzes and warnings.

We also enjoyed a session taking both grades off road, to show off their 4WD prowess. The clearances are ample, the hill-descent tech effective and the ability to scramble over wet rocks impressive. The Wilderness especially may even live up to its name!

This is a difficult SUV to fault. The Outback’s breadth of capability on and off the beaten track give it an unusually wide bandwidth for what is a monocoque bodied family convenience. That there is so much sophistication and fun to be had as well make this so much better to drive and live with than the disappointing old version.

We can’t wait to get to know the latest Subaru better on more familiar roads.

There is no ANCAP crash-test rating at the time of publishing, but anything less than the full five stars will come as a scandalous shock from Subaru.

The Outback’s aforementioned ADAS tech runs to AEB front and rear, rear cross-traffic alert, blind-spot monitoring, emergency lane-keep assist, lane-departure warning/prevention, a pre-collision braking system, adaptive cruise control with full stop/go functionality across all grades. Also present are traffic-sign recognition and new acceleration override tech to help prevent collision. Nine airbags are fitted, while a front-centre airbag is new to the series.

No AEB performance parameter information has been released as yet for Australian models.

Finally, there are two outboard rear-seat ISOFIX child restraint points and two top tethers available.

The ES300h is covered by Lexus’ four-year/100,000km warranty. Servicing is recommended every 15,000km or 12 months. There is no capped-price servicing scheme.

Subaru offers a five-year/unlimited kilometre warranty, and that also comes with 12 months of roadside assistance.

Now, that's pretty average nowadays, so nothing special, particularly when other SUV companies like Mitsubishi, Nissan and MG offer conditional 10-year warranties.

Service intervals are at 12 months or 15,000km for both engines. There is a capped-price servicing offer covering this timeframe. They are currently listed at approximately $350, $530, $405, $705 and $370 for an average of $472 per workshop visit.

There are 128 dealers or authorised Subaru service centres across Australia as of January 1, 2026.