What's the difference?
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.
Imagine jumping in the time machine, zapping back to the late 1970s and bringing the team that produced the original Mercedes-Benz G-Wagen into 2025 and showing them where their creation has landed close to half a century later.
They’d be amazed a vehicle looking so much like their military-focused, first-generation model even existed! And once they’d absorbed that incredible fact they’d be stunned to see what lurks under its familiar bodywork.
Because this is the most recent iteration of what’s now referred to as the G-Glass, the pure-electric G580 featuring four individually controlled electric motors - one at each wheel - collectively producing enough energy to power a small town.
Stay with us as we explore this take-no-prisoners EV 4WD that has multiple show-stopping, high-tech party tricks lurking up its sleeve.
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.
As per the 1979 original, the current G-Class is produced by Magna Steyr in Arnie’s home town of Graz in Austria. And many fundamental things haven’t changed since then. But clearly this EV monster’s exotic electric powertrain is a huge departure.
It retains impressive off-road ability and straight-line speed. But will it hit the mark with top-end luxury 4WDers? Short story, this thing is wild, and it will be irresistible for a likely narrow band of tech-focused ‘must have the latest and greatest’ buyers. Nothing like impressing friends and family with a tank turn.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
Look closely and quite a lot has changed. This is really a story of doing a facelift right. Lexus has kept all the great-looking bits of the car that launched in 2013, like its striking side profile and angular accents, while dumping most of its least popular elements like the spidery front light-clusters and busy front splitter, in favour of something more refined and conservative.
It even adds some new flair in the rear three-quarter, with dramatic LED light-clusters working their way into a trendy highlight strip across the boot lid.
These changes all add up for a much tougher, sportier, and nuanced design compared to the outgoing car. One that manages to make an eight-year old design look as contemporary as ever.
I even liked our test car in its plain black shade, although I'm less sure about those conservative-to-a-fault, almost Camry-esque alloy wheels.
On the inside, sadly not a whole lot has changed. The busy design looked dated when this generation of IS launched in 2013, and it still looks dated now.
The visual assault of buttons, toggles, displays, textures, and trims is a lot to take in, and makes the cabin feel smaller than it is.
It probably didn’t help the sensory overload of this car’s interior as I hopped out of the stripped-back interior in the Tesla Model 3 I had the week before.
My less-than-impressed brother, a student of design, described the IS’s interior best when he told me “It’s a bit maximalist, don’t you think?”
If nothing else, at least Lexus hasn’t blatantly imitated anyone else when it comes to its interior, but the brand remains firm on dorky design items like the laptop touchpad, redundant drive-select dial, and odd vacant panels under the climate unit which do it no favours.
A welcome upgrade for the 2021 model year is the new media screen, a highlight piece perched atop the dash. It’s bright, has excellent contrast, and doesn’t seem to fall victim to glare.
The Apple CarPlay support I used was seamless and sharp and made the most of the available real-estate in its widescreen layout.
I somehow didn’t mind that the instrument cluster in this base car is analog. It almost suits the IS’s character better than a digital set-up would. Also offered is a small information display between the dials which I used for monitoring the hybrid drive.
A final note on the IS’s design. The fit and finish is quality, inside and out. It leaves you with an impression that this is an immaculately built vehicle, one that should be a must for all luxury cars, and always a strong point for Lexus.
Okay, so Mercedes-Benz says, with a straight face, that “with the aim of optimising the vehicle’s aerodynamics” classic G-Class elements have been revised, including the reprofiled bonnet, ‘air curtain’ vents in the flares over the rear wheel arches, A-pillar cladding and the small spoiler on the edge of the roof.
At the same time, the 20-inch wheels are also claimed to be "aerodynamically optimised” and underneath, a 26mm underbody casing made from a mix of materials, including carbon-fibre (attached to the ladder frame with more than 50 steel screws), protects the battery from dust, dirt and rocks.
In ticking off the Edition One, car-spotters should look for black rims with blue brake callipers behind them, blue inserts in the exterior protective strips as well as black door handles and a new rectangular design box on the rear door for storing items such as charging cables, tools or snow chains. If you want a spare wheel, choose the standard model.
An optional black-panel radiator grille ($3800) features tinted lighting units as well as an animated LED light band and chrome surround. The light band can be activated as a running light or an animation when locking and unlocking the vehicle.
And it’s worth noting Mercedes-Benz and the car’s contracted manufacturer, Magna Steyr, have invested much time and many Euros in retaining the car’s classic handle and door lock design. G-Wagen owners will recognise its sound from several kilometres away.
Inside the G580 it’s clear this is one area where the G-Class has progressed enormously over the decades. It’s still quite upright in terms of the dash design, but you’re confronted by twin 12.3-inch screens, supporting the Mercedes-Benz user interface.
All very high-tech, but that’s balanced by an old-school grab-handle for the front passenger to latch onto during off-road work.
The signature turbine-style air vents are located within squared-off panels, and in the limited Edition One you have a blue fleck running through carbon-fibre inserts on the centre console, door cards and that front grab handle. In the standard car it’s a (very attractive) walnut open-pore wood rather than carbon.
A luxurious interior for sure.
Well, the IS is a sedan, so it doesn’t quite have that high-riding appeal of an SUV, and for this update it has even leaned further into its low-slung proportions with a roofline that descends a further 15mm and a boot lid which is 31mm lower overall.
As with the previous car, the interior is quite closed-in thanks to that busy dash design and large centre console. Rather than feeling claustrophobic though, it is best described as cosy, with lots of plush finishes throughout the doors and centre stack befitting a luxury nameplate.
Adjustability is great for the front two occupants and there are two large bottle holders between the seats, a large but shallow console box under the armrest, bottle holders with adjoining bins in the doors, and a smallish glove box.
That’s about where storage ends though, with no extra trays or bins in front of the oddly placed shifter, just an awkwardly finished plastic panel where it feels like a little tray or storage cutaway should be.
The touchpad for operating the media screen joins an unnecessary drive-select cluster in eating up centre console space where there could be more storage.
The rear seat is quite limited on space despite being lavishly trimmed. I fit behind my own (182cm/6'0") driving position with little knee or headroom to spare.
Again, it’s cosy and very comfortable, but if you're taller or wider than me you may run into issues.
The centre rear seat is all but useless for adults, with the IS’s rear-drive architecture necessitating a huge transmission tunnel that almost comes as high as the seat base itself.
Storage is limited to pockets on the back of the front seats, small bins in the doors that double as handholds, and a drop-down armrest with two bottle holders.
There are no power outlets for rear passengers, but there are dual adjustable air vents.
Boot space is 450L which is a little small for the class. It’s impressive the hybrid only managed to lose 30 litres compared to petrol-only IS variants, though, so best to count your blessings.
The largest CarsGuide travel case easily fit in the wide but short available space.
For the record, the G63 is just over 4.6m long and a little more than 1.9m wide with a 2890mm wheelbase. So, not huge, but its close to 2.0m height is hard to ignore.
In the front there’s lots of breathing space, and in terms of storage you have generous bins in the doors with plenty of room for big bottles. Then there’s a centre armrest, which doubles as the top of a deep storage box housing a USB-C port inside.
A sliding roller cover in the centre console reveals two cupholders, another two USB-C sockets, a 12-volt outlet and a wireless charging pad. Add in a big glove box and you’ve got plenty of options in terms of storage, power and connectivity.
In the back, sitting behind the driver’s seat set for my 183cm position I’ve got tons of foot and legroom and, no surprise, lots of headroom.
There’s a fair bit of sculpting in the rear seat, which is as nice as it is unusual (makers often avoid bolsters on the rear seat as it makes the backrest harder to fold flat). And in terms of three-abreast accommodation, a smaller adult will be okay in the centre spot for shorter journeys. Three up to mid-teenage kids will be swimming in it.
Then, for practicality you again have generous bins in the doors. And if you need even more capacity, fold down the centre armrest which houses two different size cupholders.
In the rear of the centre console you’ve got two USB-Cs, a 12-volt power outlet, individual climate control and directional vents.
There are map rockets on the front seatbacks and more air vents in the B-pillar. So, when it comes to comfort, powering up devices and storing ‘things’ you’re well taken care of.
The side-opening tailgate door opens from right to left, which isn’t ideal when parallel parked on the left hand side of the road, but boot volume is over 600 litres (VDA) with all seats upright, expanding to nearly 2000 litres with the 60/40 split-folding rear seat lowered.
There are multiple tie-down hooks, a netted pocket, two lights, a 12-volt outlet as well as a ‘ski-port’ door and sliding cargo cover to enhance practicality and security.
As mentioned earlier, the full-size spare in the standard model, but the Design Box replaces it on the Edition One, although Mercedes-Benz says it’s aiming to make a spare available as an option later in the year.
To be precise the variant we’re looking at here is the IS 300h Luxury. It’s the base IS trim with the hybrid powertrain and it wears a before on-road costs (MSRP) of $64,500.
Base car or not, the new IS is very well specified. Now standard are 18-inch alloys (up from 17s), full LED headlight clusters, eight-way power adjustable front seats, dual-zone climate control, 10-speaker audio system, and importantly a brilliant new 10.3-inch multimedia screen with widescreen Apple CarPlay, Android Auto, built-in navigation, and DAB+ digital radio support.
Keyless entry and push-start ignition also continue to be offered, as well as a leather-look interior trim which in our car was in a rather contrasting 'Ochre' colour option.
Our IS 300h was also fitted with the creatively named ‘Enhancement Pack 1’ which adds an openable moonroof for $2000. The significantly more expensive ‘Enhancement Pack 2’ ($5500) adds the moonroof alongside 19-inch alloys, upgraded LED headlights, interior ornamentation, scuff plates, a panoramic reversing camera, 17-speaker premium audio, ‘leather-accented’ interior trim, ventilated front seats, and an electric rear sunshade.
These packs are seemingly largely unnecessary but are also very cheap for a brand at the premium end of the market.
Lexus has made pretty much all of its high-end active safety equipment standard on this base ‘Luxury’ for 2021, alongside some previously unavailable tech which we’ll take a look at in the safety section of this review.
At this price the Lexus IS 300h goes into battle against the Mercedes-Benz C 200 ($66,900), BMW 320i ($70,900), Audi A4 35 TFSI ($55,900), and the ever-looming threat of Hyundai’s Genesis, which offers its similarly-sized G70 in base form at $59,300.
Some of these base-spec rivals are cheaper, some are more expensive, but did you notice none of them are hybrids?
Access to Toyota’s affordable and popular hybrid drive is a real point of difference for the Lexus brand, and we expect it’s a key drawcard for the loyal customer base. More on that later.
The new Mercedes-Benz G580 is priced at $249,900 and a more highly-specified limited Edition One version comes in at $299,900, both before on-road costs.
That’s a price territory where the BMW X5 and X6 M Competition ($244,900 & $250,900) as well as the Range Rover Autobiography ($233,961) live. Not to mention competition from the G580’s still available and appreciably pricier twin-turbo V8 Mercedes-AMG G63 stablemate ($365,900).
As you’d expect, the standard features list is substantial and the highlights are Burmester 3D Surround Sound audio (with digital radio), leather upholstery, keyless entry and start, a multi-function steering wheel trimmed in Nappa leather, power front seats with memory function, heated and cooled cupholders, and wireless smartphone charging.
There’s also dual 12.3-inch driver instrument and central media displays, ambient lighting and adaptive LED headlights as well as Android Auto and Apple CarPlay.
As well as cosmetic changes, covered shortly, the Edition One steps up to ‘Silver Pearl’ and black Nappa leather trim (with blue contrast stitching).
There’s also a range of optional packages bundling up everything from exterior body elements to interior trim and additional multimedia, the latter especially for back-seaters.
The ‘Night Package’ ($4300) includes black exterior mirror housings, black running boards and wheels as well as darkened exterior lights and a radiator shell that can be illuminated for an impressive profile while driving.
A ‘Superior Line Interior Plus Package’ ($14,500) brings full Nappa leather upholstery, ‘Active Multicontour Seat Package Plus’ and grab handles in leather. Then a ‘Manufaktur Exterior Package’ ($4100) finishes the roof, bumpers and wheel arches in ‘Obsidian Black’.
But the one that will score you maximum brownie points with the kids is the ‘Interior Comfort Package’ ($8500), featuring a rear seat entertainment system, including two integrated 11.6-inch touch displays.
The IS 300h does stand out from the luxury sedan crowd by offering a hybrid drivetrain at a reasonable price. Some rivals offer plug-in options further up the price scale cementing them as a niche option, but the beauty of this Lexus is its very mild $3000 price jump over the base petrol car.
The base car’s 2.0-litre turbo is dumped in favour of a 2.5-litre non-turbo Atkinson-cycle four-cylinder hybrid set-up similar to the one proving popular in the Toyota Camry and RAV4.
The petrol engine produces 133kW/221Nm on its own, and the electric motor produces 105kW/300Nm. Toyota says the “combined system output” of this is 164kW.
Either way, that's less than the base 2.0 turbo. The 300h also swaps out an eight-speed torque converter automatic in favour of a continuously variable transmission. Rare in a rear-wheel drive car.
The G580 is powered by four permanently excited synchronous motors, each delivering around a CLA200’s worth of power and torque to each wheel for overall outputs in excess of 432kW/1164Nm.
Each motor has its own two-stage transmission and power electronics for almost infinite fine-tuning of the direction and amount of drive sent to individual wheels. Merc calls it ‘individual-wheel drive’.
As you might hope this hybrid IS has an astoundingly low official/combined fuel consumption rating of 5.1L/100km.
I was pleased to find that after a week of mainly urban driving conditions, our IS was returning a figure of 6.9L/100km. Not bad at all, especially for a class where fuel consumption can get a little out of hand with turbocharged engines or V6s.
Of course, using the hybrid system to your advantage over the long term will get this number much lower, as I discovered on my long-term test of the Toyota Corolla hybrid which essentially uses a smaller version of the same system.
Certainly, if fuel consumption is a high concern, you’re better off with this car than the top-spec V6 (IS 350) which will easily see consumption enter double digits.
Lexus recommends a minimum RON rating of 95 for the IS 300h, and the fuel tank is 66 litres regardless of variant, giving the hybrid an impressive theoretical range of around 1000km.
Housed in a torsion-resistant casing and embedded low down in its ladder-frame chassis, the G580’s 116kWh two-tier, liquid-cooled lithium-ion battery pack delivers a WLTP-rated range of 473km, or 567km on the more lenient NEDC scale.
‘Eco Assistant’ and ‘Range Monitoring’ functions provide continuous information on battery status, energy consumption and estimated range.
Maximum system capacity is 400 volts which enables 200kW DC charging, meaning a 10 to 80 per cent fill in as little as 32 minutes. Maximum AC charging capacity is 11kW.
Claimed energy use is 23.1kWh/100km, and we saw an average of 28.6kWh across urban and highway running on the launch drive program.
Not exactly a ‘green’ EV choice, then, but it’s worth noting a one-year Chargefox subscription is included to off-set the car’s energy appetite.
There is no doubt the IS 300h is capable. You can feel it through the car’s solid rear-drive underpinnings, silky smooth steering, and reactive chassis.
What this car doesn’t offer is excitement in quite the same sense as many of its rivals. That’s down to this hybrid’s drivetrain. It just doesn’t have that powerful follow-through in the same way turbocharged BMWs or Audis or Mercedes do.
If it’s that 'sports luxury' experience you’re seeking better off looking to the base 2.0-litre turbo or the V6 and their eight-speed automatics.
The 300h does offer something a bit different. The gentle refined efficiency of Toyota’s signature hybrid system in a luxury rear-drive package that’s smaller than this car’s ES bigger brother.
While it may feel capable thanks to the lighter suspension components and altered track that the brand has committed to for this update, the hybrid drive matches this car’s softer character brought about by its gentle suspension tune and light steering.
This is an easy car to drive around a city, it filters out bumps nicely, while offering near silence in the cabin and breezy steering for every day scenarios like manoeuvring in tight parking lots.
The CVT auto and instantaneous torque available from the electric motor make it best at traffic speeds, being both reactive and predictable, with silent acceleration when inching forward at the lights or cruising along at 50km/h.
As you might expect though, the wheezy Atkinson cycle engine and CVT conspire for a noisy and less than engaging experience under heavy acceleration.
It’s not as though you’re rewarded with particular vigour either, with this combination being a bit sluggish when a lot is asked of it.
It loses its reactivity and refinement at higher speeds or in the corners on country roads as the transmission elastically tries to keep up with the demands of the driver.
Still, few luxury sedans are quite as purpose-built for the toils of a city, and if you want to get drawn into this car’s hybrid drive antics, it’s easy to make a game out of saving fuel by trying to rely on its low-speed electric motor capability.
Really then, it leans into its urban luxury appeal. A luxury sedan for the streets of Tokyo. An ideal car in this class for the urban environment.
If you don’t care for the thrill of a turbocharger or frequently seek to explore the twists of your nearest B-road, you could do worse than the comfort and ambiance the 300h offers.
So, with 432kW and around 1160Nm, even though the G580 weighs in at around three tonnes, you’re talking 0-100 km/h in 4.7 seconds. And this car gets up and goes… like a beast.
What you don’t get is that traditional Merc-AMG G63 V8 rumble, because, of course, no engine.
But you do get what Mercedes calls ‘G-Roar’, essentially a sound bar at the front of the car also using the audio system inside to give it what is not exactly an engine noise but some sense of the car progressing. And you can turn it off for completely silent running.
‘Electric Dynamic Select’ changes the parameters of the motors, transmission, suspension, ESP and steering as required. On-road that means ‘Comfort’, ‘Sport’ and ‘Individual’ modes, with off-road comprising ‘Trail’ and ‘Rock’. In the Comfort setting drive flows primarily to one axle for optimum energy efficiency.
Suspension is by double wishbones at the front and a De Dion-style live (rigid) axle at the rear. You’ve got the same adaptive-type set-up as per other G-Class models, so ‘Comfort’ and ‘Sport’ modes and of the many traditional G-Class traits this car exhibits, ride quality is one of them.
Even in Comfort you’ll find even little bumps and thumps making their way up into the seat of the pants and the cabin. It is after all a body-on-frame, ladder-chassis type vehicle and that’s not unusual.
In terms of steering, it’s accurate and road feel is good. You’ve got 275-wide Falken Azenis FK520 tyres that are more on- than off-road focused. The car feels stable and nicely planted on the road.
The physical brakes are by ventilated discs front and rear, and the big rotors are the same size (353mm) all around. They work nicely and feel like a conventional set-up.
Regenerative braking kicks in as soon as you lift off the accelerator pedal. The powertrain is harvesting energy as the car decelerates and there are four levels you can adjust with the steering wheel paddles up to a quite aggressive level - not quite, but close to a single-pedal set-up.
Off-road, the G580’s ‘G-Steering’ system allows the wheels to turn at different speeds to induce slight ‘drift-like’ oversteer and tighten the turning circle. It works beautifully and the car’s fording depth is 850mm, a full 150mm more than internal-combustion G-Class models.
A three-speed off-road crawl function is adjustable to speeds as low as 2.0km/h, and the car is claimed to remain stable on sideways slopes up to 35 degrees.
Torque vectoring is used to create ‘virtual diff locks’ and there’s a ‘low-range’ setting. Switch to the ‘Offroad Cockpit’ and data including gradient, lateral inclination, compass readings, tyre pressures and the selected G-Mode appear.
A ‘Transparent Bonnet’ function creates a virtual view of what’s approaching and passing under the front wheels to help the driver pick their way through steep ascents or declines.
For the record, the G580’s approach angle is 32 degrees, departure is 30.7, breakover is 20.3 and ground-clearance is 250mm.
And of course, with the wheels independently powered, the G580’s signature move is what Mercedes-Benz calls a ‘G-Turn’ but the rest of the world calls a tank turn.
If you encounter an obstacle that makes forward progress impossible, the system spins the left- and right-hand wheels in opposite directions so this brute can turn on the spot like an M1 Abrams. You can’t help but crack up laughing when executing this extreme party trick!
In terms of miscellaneous observations around ergonomics and the car in general, it has a 13.6-metre conventional turning circle. So if you’re not using the G Turn function in the car park be ready for a sizeable turning arc.
Also, those aero tweaks here and there seem to have had an effect. Wind noise, especially for such an upright, squared-off design is surprisingly modest. And overall, from a build point of view, this car feels as though it’s been carved from a solid piece of metal. In every aspect it presents as a quality item.
A full active safety suite is now standard across the IS range, including freeway-speed auto emergency braking with pedestrian detection (works during the day and at night) and cyclist detection (works during the day only), and a new intersection braking feature, lane keep assist with lane departure warning, blind spot monitoring, rear cross traffic alert with reverse auto braking, traffic sign recognition, adaptive cruise control, and auto high-beam assist.
There is also an auto SOS function, as recently added to the Toyota Yaris Cross, which automatically triggers if an airbag is deployed. On the topic of airbags, every IS has a thorough suite of 10 (dual front, dual side, quad head, dual front knee).
This all adds up with the standard array of stability, brake, and traction controls for a maximum five-star ANCAP safety rating, although the IS was last assessed way back in 2016.
The IS is built in Japan.
Although the Mercedes-AMG G63 carries a maximum five-star ANCAP safety assessment from 2018, the pure-electric G580 is unrated. But crash avoidance tech includes active cruise control, ‘Active Steering Assist’, high-speed AEB, traffic sign recognition, lane-keeping assist, blind-spot monitoring, driver fatigue monitoring as well as a 360-degree camera view and ‘Active Parking Assist’.
And if a crash is unavoidable, there are no fewer than 11 airbags on-board, including driver and front passenger front and side, rear side, full-length curtains, driver and passenger knee and a front centre bag.
There are three top-tether points for child seats across the second row, with ISOFIX anchors on the two outer positions.
Lexus gets slightly ahead of the luxury pack with an extra year of warranty. While BMW and Audi still sit on three, Lexus offers four, but it is limited to 100,000km and is still outdone by Mercedes-Benz and Korean newcomer, Genesis, offering five-year/unlimited kilometre promises.
The IS has capped price servicing fixed at $495 for the first three years of ownership with roadside assist, and the brand will even pick up and drop off your car, or offer a free loan car during every 12 month or 15,000km service.
It’s worth noting that German rivals offer pre-paid service packages out to five years, and Genesis is trying to make a splash with free servicing.
Lexus does offer a luxury ownership program dubbed ‘Encore’ which includes invites to experiences and certain partnerships with restaurants and the like to keep potential owners enticed.
The G580 is covered by Mercedes-Benz Australia’s five-year/unlimited-km warranty, which remains the standard offering in the premium part of the market and an eight-year/160,000km drive battery warranty.
Service intervals are every 12 months or 20,000km with service plan pricing available over three ($2645), four ($3980) and five ($4670) years. In approximate terms, each workshop visit will cost ‘around’ $900. Not exactly cheap, especially for an EV, but this is no ordinary electric vehicle.