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.
Peugeot has dropped its traditional petrol and PHEV options for a new mild-hybrid system in the next-generation 3008.
We’re testing the flagship GT Premium Hybrid, which brings fresh styling, upgraded tech and a premium cabin into one of the most competitive SUV segments, but is it enough to stand out?
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.
The new Peugeot 3008 GT Premium Hybrid might not be the most spacious SUV for passengers, but it makes up for it with ample boot space and a standout design. It’s fresh-faced, interesting and packed with comfort features that elevate the everyday driving experience.
Is it expensive? Absolutely. But it also delivers a genuinely premium cabin that many rivals can’t match, along with refined on-road manners and efficiency that make it a pleasure to drive.
It doesn’t hit every note perfectly but there’s definitely a melody here worth listening to.
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.
The third-generation Peugeot 3008 boasts a striking silhouette, with coupe-like lines at the rear and well-proportioned overall dimensions that give it a confident, refined stance.
Signature Peugeot elements like the claw-inspired LED headlights and tail-lights lend it a distinctive, modern edge, which elevates its presence in a crowded SUV segment.
That said, the extensive use of black plastic cladding around the lower body detracts from the otherwise premium exterior and feels out of place.
Step inside and the cabin is easily one of the most captivating interiors I've been in recently. There's real design flair here: a multi-level centre console, sculpted ambient lighting panels that highlight the angular dashboard, and a rich, eclectic mix of materials. From quilted Nappa leather seats to textured grey knit fabric and brushed aluminium accents, it’s a refreshingly bold and beautifully executed space.
Add the panoramic sunroof and long equipment list, it's a cabin that you'll like to spend a lot of time in.
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.
The best part of the cabin is easily up front. There's generous space, and the seats are comfortable, even before you engage any of their functions. Longer trips have been a dream. I particularly enjoyed the massage settings, though the session durations felt a bit inconsistent.
Storage in the front is cleverly designed, with plenty of options: a sunglasses holder, a large glovebox, a phone shelf, a deep centre console and ample drink holders. It’s easy to keep the space tidy and organised.
Charging options are solid, with two USB-C ports, a 12-volt socket and a wireless charging pad.
The updated multimedia system has a screen that is wider than it's tall, making the icons small and easy to miss while on the go. I did tap the wrong one a few times!
That said, I appreciated the customisable quick-access and instrument panels, and connecting to the wireless Apple CarPlay was seamless. The touchscreen can be a little laggy, but overall the system is functional and intuitive once you're used to it.
Owing to its relatively short 4542mm length, rear legroom is tight, and the bench isn’t wide enough to comfortably seat three adults over long distances. This just makes it feel cramped for a mid-size SUV and it's something my eight-year old noticed straight away.
The seats are well-padded, though, and rear amenities are strong with directional air vents, heated outboard seats, two USB-C ports, a 12-volt socket and the usual cupholders and map pockets.
Boot space is generous at 520L with a flat load floor. The 48-volt battery means there's no spare tyre, but the powered tailgate with kick-function was a lifesaver during errand runs this week. For more flexibility, the rear row folds in a 40/20/40 split.
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 3008 has a streamlined line-up of only two grades, at least for now, and we’re in the flagship GT Premium Hybrid for this review.
The third-generation 3008 has a new mild-hybrid powertrain, which pairs a turbocharged petrol three-cylinder engine with a small electric motor and a 48-volt battery. A fully electric version exists overseas but is yet to be confirmed for Australia.
Our test model competes with popular mid-size SUV rivals like the Mazda CX-5 Akera, which starts at $55,150 before on-road costs, and the Toyota RAV4 Cruiser 2WD, which sits at $51,410.
With its $64,990 price tag, the new 3008 GT Premium Hybrid is the most expensive option, which might only appeal to fans of the brand.
However, the GT Premium is very well-specified with massaging and heating functions for the electric front seats, a panoramic sunroof, a 10-speaker Focal sound system and a 3D sat nav with connected services, where you can get information like local car park pricing, as well as over-the-air updates.
Other premium features include ventilated front seats and heated rear outboard seats, which are new for this model.
But the biggest change inside is the new 21-inch display, which houses the updated multimedia system and digital instrument cluster.
There are other new features like wireless Apple CarPlay and Android Auto, and an upgraded panel for your quick access menu widgets (up to 10 widgets can be customised).
Other features include a handsfree powered tailgate with kick functionality, keyless entry and start, four USB-C ports, a wireless charging pad, a tyre repair kit, a panoramic sunroof and surrounding ambient lighting.
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.
All grades of the 3008 are powered by the same mild-hybrid setup, featuring a 1.2-litre three-cylinder turbo-petrol engine that's paired with a small electric motor and a 48-volt battery. Power is sent through a six-speed dual-clutch transmission, with the system delivering combined outputs of 100kW of power and 230Nm of torque.
Performance is modest, with a 0-100km/h sprint time taking 10.2 seconds. It’s perfectly adequate for everyday driving around town and in traffic, but the lack of urgency becomes more noticeable when overtaking at highway speeds. Still, the hybrid system offers smoother low-speed acceleration and improved efficiency over the outgoing petrol-only model.
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.
The new mild-hybrid powertrain brings a solid improvement to efficiency, with an official combined fuel consumption of 4.9L/100km. Paired with a 55-litre fuel tank, that delivers a theoretical driving range of up to 1122km, which is an impressive figure for a mid-size SUV.
Over the past week, I’ve done a mix of longer highway drives, urban errands and the usual big grocery hauls. My real-world average came in at 6.1L/100km, which is still a strong result for this segment.
The system also features regenerative braking, which while not customisable, is noticeable in everyday driving. It kicks in strongly enough to give the sensation of heavy braking at times, particularly in city traffic and it reminds you that it's working behind the scenes to recover energy.
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.
The 3008 has been genuinely enjoyable to drive. It’s easy to handle, with responsive steering and a stable, confident feel at higher speeds. The transmission generally keeps the powertrain in the right gear, only occasionally over-revving during open-road driving.
Power delivery is prompt enough for stop-start traffic and quick city lane changes. That said, there's a noticeable dip in performance when overtaking on the highway and it’s a clear reminder that this isn’t a high-output powertrain.
Visibility is generally good, though the narrow rear window can limit your view, especially when passengers or a child seat are in the back. Still, the pillars didn’t obstruct my view from the driver’s seat.
The suspension is on the firmer side, so you will feel the larger bumps, but it strikes a decent balance for everyday driving.
There’s a bit of body roll when cornering, which prevents it from feeling as sporty as its coupe-inspired design might suggest.
Parking is a breeze thanks to the clear 360-degree camera system, ample sensors and a tight 10.64m turning circle. My only gripe is that the rear camera points slightly downward, which can make the view feel narrower than expected.
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.
At the time of writing, the 3008 is untested and unrated by ANCAP, which may be a consideration for some buyers. It also features just six airbags, missing a front centre airbag — a growing standard in many newer rivals.
On the plus side, Peugeot has added several useful driver assistance features, including forward collision warning, long-range blind-spot monitoring and lane departure warning.
Other standard features include autonomous emergency braking, lane-keeping aid, lane-following assist, driver attention alert and monitoring, traffic sign recognition, rear cross-traffic alert and adaptive cruise control with stop and go functionality.
There are also child locks on the rear doors, an intelligent seatbelt reminder, front passenger detection and tyre pressure monitoring. Most of these systems operate quietly in the background and don’t feel overly intrusive, which I always appreciate.
However, I did encounter a concern with the autonomous emergency braking system. During a close call when another driver blew through a roundabout in front of me, the system didn’t alert or react — no sounds, no warnings. It was a surprising omission, especially in a moment where you’d expect the tech to step in.
The rear row has ISOFIX child seat mounts and three top-tether anchor points but two seats will fit best.
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 3008 comes with a five-year/unlimited-kilometre warranty, which is okay but now feels a bit basic, especially when rivals like Nissan offer up to 10 years of coverage (under specific servicing conditions).
Peugeot also provides a five-year capped-price servicing plan, or you can opt to pre-purchase servicing for three, four or five years. The five-year pre-paid plan comes in at $1890, which works out to be more affordable than sticking with the capped-price option.
Servicing intervals are every 12 months or 25,000km, whichever comes first. That’s quite generous, particularly if you rack up a lot of kilometres annually.