Lexus IS vs BMW X3
What's the difference?

Lexus IS

$39,990 - $62,990

2021 price

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BMW X3

$88,100 - $131,400

2026 price

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Maserati Quattroporte

Mazda 2

Mazda 6

Mercedes-Benz A-Class

Mercedes-Benz A35

Mercedes-Benz AMG GT

Mercedes-Benz C-Class

Mercedes-Benz C43

Mercedes-Benz C63

Mercedes-Benz CLA

Mercedes-Benz CLA-Class

Mercedes-Benz CLS-Class

Mercedes-Benz E-Class

Mercedes-Benz E53

Mercedes-Benz EQS

Mercedes-Benz GLC-Class

Mercedes-Benz S-Class

Summary

2021 Lexus IS

2026 BMW X3

By Tom White

By Mark Oastler

Safety Rating

Engine Type

Inline 4, 2.5L

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Fuel Type

Premium Unleaded/Electric

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Fuel Efficiency

4.9L/100km (combined)

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Seating

—

Likes

Sleek and efficient hybrid drive
Graceful ride
Spec improvements

M performance
Rear seat knee/headroom
Versatile family/driver’s car

Dislikes

Slow
Busy interior design
Fiddly and over-complicated software

No ANCAP
Prefers premium fuel
Rear seat shoulder room for three adults

2021 Lexus IS Summary

One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?

When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.

The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.

As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.

This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.

Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.

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2026 BMW X3 Summary

BMW has recently launched its fourth-generation (G45) X3 range, which comprises three petrol variants including the entry-level 20 xDrive, mid-grade 30e xDrive PHEV and top-shelf M50 xDrive.

The new trio brings revised powertrains, new exterior and interior styling, increased standard equipment, enhanced technology and an emphasis on the use of sustainable materials.

We recently trialled the five-seater flagship to see if it has the right mix of performance and practicality to maintain the X3’s enduring appeal for Aussie families.

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Deep dive comparison

2021 Lexus IS 2026 BMW X3

Verdict

Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.

While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.

Verdict

This is a highly competent all-rounder, given that it has the comfort and practicality for urban family duties yet with its revered M breeding can produce a level of performance which, in competent hands, could hold its own at a track day where its capabilities could be safely explored.

Lexus IS vs BMW X3 What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Lexus IS vs BMW X3
What's the difference?