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.
We are approaching a decade and a half since Toyota dipped into its vault and pulled out an iconic pair of digits, 86, and stuck ‘em on the back of a new car it co-developed with Subaru.
Named for, and loosely inspired by, the rear-drive AE86 Corolla of the mid-1980s which was cemented in the pop culture pantheon by the anime Initial D, the Toyota 86 is in its second generation and wears a ‘GR86’ badge to incorporate the name of Toyota’s sports car division.
The 86 was, when launched, extremely affordable but has since become more expensive, and getting into a top-spec version of the GR86 is a task that’ll sap $20,000 more from your wallet than the original 86 base model.
To find out if it’s worthwhile, we’ve snagged a 2026 Toyota GR86 GTS with optional Dynamic Performance Pack (DPP) to see if Toyota’s accessible sports car still hits the same sweet spot between genuine performance and decent value.
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.
You’ve reached the end of this review and might be looking at the final score thinking it seems low. If you’re a keen driver and considering a GR86, all you need to know is this: the GT will provide plenty of fun for the money.
But if you’re more serious about your two-door rear-driver, and thinking about track days, the GTS with Dynamic Performance Pack might be worth it. It’s not an obscene amount more, and in a few years the extra cash might not even register.
Plus, there might not be much longer to be able to pick up cars like this new, anyway.
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 86 was already an attractive sports car, with a traditional shape and just enough aggressive detailing to be appealing without looking too fussy.
Luckily, the GR86 remains restrained enough and changes are light enough that the lineage is clear. The car now looks a little more aquatic thanks to some rounding at the front, and its tail-lights are even more clearly from the Subaru side of the partnership.
While being less aggressive overall, the GR86 retains the essence of its first-gen forebear.
The interior is also clearly tweaked rather than entirely refurbished. Aside from the red carpeting and highlights in the example we’re driving it’s not massively exciting visually. But function beats form in this case.
Speaking of form and function, the red Brembo brake calipers are for more than show, with twice as many pistons helping stopping power. But given the number of comments from non-enthusiast friends, they’re also doing the job looks-wise.
Oh, and as mentioned, the White Liquid premium paint comes in at $575. 'Spark Red' is the only no-cost colour.
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 what it is, the GR86 provides enough to make par when it comes to interior convenience, but there are drawbacks to buying a compact four-seater, two-door sports car.
If you’re tall, getting in and out can be a struggle. Even at 180cm you might feel like getting out after a long drive is a bit of work.
The fact there are seats behind the front seats means you’re relatively snug even as far back as they’ll go, but the driver-focused feeling of the cabin is worth it.
The physical switches and buttons are welcome, and the fact the 8.0-inch multimedia touchscreen is only for audio, settings, or nav (if you have phone mirroring plugged in) is a win for minimising distractions.
The materials feel relatively rudimentary aside from the seating upholstery, and the cabin doesn’t escape the cost-cutting presence of plastic, but the layout is functional.
Cupholders can be hidden under a cover just behind where the driver’s elbow might rest, which can be annoying to reach even if its purpose is to be out of the way.
Behind the main seats, there’s room for kids for a decent trip or, if you’re not hugely fond of them, adults for a while. Again, I’m a fairly average height and I don’t feel like I could spend longer than a 15-minute trip there before getting antsy.
It’s good they’re there, because having bad seats is better than no seats in a pinch, but don’t seriously think of this as a car for getting more than two people around.
The 237 litres in the boot is decent for a sports car, enough to get luggage or groceries in, but a limited opening space means stowing bulky stuff is trickier.
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.
While inexpensive on the scale of sports cars, the Toyota GR86 GTS with the 'Dynamic Performance Pack' option ticked is relatively pricey for the badge.
The GTS’s starting price of $46,090, before on-road costs (regardless of automatic or manual transmission), is joined by a $2200 bump from the Performance Pack, then in this example’s case there’s a $575 charge for the 'White Liquid' premium paint.
Toyota’s website suggests $53,924, drive-away, for a GR86 specified to match our test car. It’s not a huge ask in today’s world, but a Toyota 86 used to start for less than $30,000, before on-roads (we’re talking more than a decade ago), and the car wasn’t dramatically different.
Compare the top-spec Mazda MX-5 GT RS, the GR86 GTS’s (with the Performance Pack) natural rival, at $51,790, before on-roads, or even the GR86’s Subaru BRZ twin in tS spec at $49,190, before on-roads, and the GR86 looks like decent value.
Other options for little sporty things like the Mini Cooper or Hyundai i30 N start in the low $50,000 range, while $41,990 before on-roads snags you a slightly smaller VW Polo GTI.
For the money, the GR86 GTS packs in enough features to feel decently premium for such a small space. Having said that, the 8.0-inch multimedia touchscreen and 7.0-inch digital driver display are nothing to write home about, nor are the six-speaker sound system or wired Apple CarPlay and Android Auto.
The GTS’s combination synthetic suede and leather (heated) front seats and its sportier trim (sports pedals, door scuff plates and door lamp) are notable however, as is the addition of extra safety kit over the base model. Really, though, rear cross-traffic alert and rear blind-spot monitors should be standard.
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 GR86’s 2.4-litre flat-four petrol engine remains naturally aspirated (rare for a modern sports car) and drives the rear wheels via either a six-speed automatic transmission or a six-speed manual gearbox - the latter also increasingly rare.
Outputs are 174kW at a lofty 7000rpm and 250Nm at 3700rpm regardless of transmission.
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.
A 50-litre fuel tank provides minimum 98RON petrol to the engine at a rate of 9.5L/100km according to Toyota, that’s here in the manual. The claim for an auto is 8.8L.
On test, we saw 11.0L/100km, which included a spirited mountain drive, a long highway stint and some rather stop-start inner-city commuting.
It’s not a bad figure for a sports car, but you’d be disappointed to see it from just about any other small Toyota.
With that in mind, realistically you’re looking at around 500L to a tank if you’re not pushing things too hard.
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.
This is where the biggest question lies regarding the GTS’s value proposition. Is it worth paying several thousand dollars more for a GTS with the Dynamic Performance Pack when a GT might be all you need?
The GR86 sticks to the basic formula that made the previous 86 a gem, and just slightly improves areas where there was ‘feedback’ from buyers.
The biggest one is the torque dip that used to plague the middle of the 86’s rev range. If you looked at a dyno chart (which the 86 had built in, funnily enough) you could see the little drop where the torque fell away, so driving in either a lower of higher gear was sometimes necessary to dodge it.
No more with the bigger 2.4-litre engine. It’s more powerful, if thirstier, but still feels like a tool rather than something to really enjoy. It’s not the most characterful of things, and its fake engine sound through the cabin can feel a infantile.
The gearbox is also not at the forefront. The shift feel is decent but there could be a little more clutch feel, getting into it after driving an old manual might see you stall and embarrass yourself once or twice.
The steering and handling, though, is sublime. The steering feel is sharp and tactile, you know what’s happening at the front tyres and you’re given the right information to make adjustments accurately. It’s well-weighted, and doesn’t have a big numb spot on-centre.
If you were so inclined, at a track, this is a relatively easy car to slide and let the tail hang just a smidge.
If you find yourself making a mistake, the traction control is very good at catching errors before they become problems, but without stopping the fun while also letting you feel where it went wrong.
When it comes to the tweaked brakes and suspension included in the DPP, the GR86 is never going to be truly comfortable and unless you're tracking the car it’s not heavy enough to overwhelm the brakes on a public road.
The suspension on bumpy inner-city roads, even with the Sachs sports dampers which Toyota says “improve both on-road ride comfort and handling in dynamic situations”, don’t soak up the rough stuff particularly well. But they do stop it from feeling properly crashy.
Spoiler alert. Aside from the upgraded interior features, the GT’s $43,940, before on-road costs, price tag is some of the best-value motoring around, even if it’s much more expensive than the 86 was a decade ago.
The GTS’s asking price with the DPP at $48,290 isn’t atrocious, but it’s probably worth asking yourself whether the extra few thousand dollars is necessary, especially when the Sachs sports dampers don’t exactly make the car magically comfortable.
You’re going to have fun with this car in any form, so spending the extra on the GTS is optional, and the DPP is something you’ll probably get the most out of on a track.
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.
The car we tested, despite costing the most it possibly could, still lacked some safety kit.
There are two ways to miss out on some safety features in the GR86 - buy the GT, or buy a manual.
If you opt for the GT, you don’t get rear cross-traffic alert or blind-spot monitoring. If you have a manual, you forgo a parking support brake and rear parking sensors.
There’s also no ANCAP rating for the GR86 though we aren’t marking it down for this. Toyota and ANCAP seem to think buyers of small sports cars are aware there might be safety drawbacks and understand what they’re getting into.
The GR86 has seven airbags, a seat-belt warning, auto high-beam, AEB in all variants, lane departure warning, and hill-assist. Nothing intrusive and a lack of annoying beeps and chimes which is welcome in a car focused on letting the driver be in charge.
If you're determined to fit a child seat (or two!) in the back there are top tether points and ISOFIX anchors for both 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.
Toyota offers a five-year, unlimited kilometre warranty, which increases to seven years if you keep your servicing within Toyota’s network.
It’s a step-up from what has been the standard mainstream warranty for some time, but other brands are pulling ahead with eight- or even 10-year warranties.
There’s also a capped-price servicing plan for five years and the first five services are limited to $335 at the time of writing.
Finding somewhere for that should be a breeze, Toyota has so many dealerships it simply lists ‘over 275 locations’ as its latest count.