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.
Fact: almost one in every two mid-sized (2.5-3.5-tonne GVM) commercial vans sold in Australia is a Toyota HiAce. And if you take note of the diverse range of businesses that rely on this ubiquitous workhorse, as we did recently, you can appreciate its widespread appeal.
Apart from countless couriers and tradies, the HiAce is favoured by a vast range of businesses from locksmiths and pool maintenance specialists to window cleaners and mobile coffee baristas.
To ensure the HiAce maintains its broad business appeal, Toyota has recently released an upgraded range with enhanced active and passive safety features, improved instrumentation, electric power steering and other refinements. We recently spent a week at work with the latest offering to determine if its market dominance is justified.
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 HiAce maintains its staggering 50 per cent share of the mid-size commercial van market for numerous compelling reasons including its versatility, as evidenced by the diverse range of Aussie businesses that rely on it. Toyota’s latest suite of safety and other upgrades makes it even better.
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.
Apart from the recent safety upgrades, our LWB test vehicle resolutely adheres to a design that’s been perfected through decades of hard yakka.
Its simple and robust unitary chassis features MacPherson strut front suspension, a leaf-spring live rear axle, rack and pinion steering and (on all automatic variants) four-wheel disc brakes.
The HiAce’s traditional rear-wheel drive layout has an inherent traction advantage over front-wheel drive rivals, particularly when towing and hauling heavy loads on low-grip surfaces.
It also ensures the front wheels can be turned sharply enough for its 3210mm wheelbase to deliver an impressively tight 11.0-metre turning circle. And its 1990mm height also allows access to underground loading docks and multi-storey car parks.
There’s no load-floor liner or cabin bulkhead included as standard equipment, but both are available as Toyota genuine accessories. The use of unpainted plastic bumpers is designed to best withstand the wear and tear often evident in these areas on hard-working vans.
The cabin is spacious and airy, with a neat and functional dash design featuring large and clear instrumentation and (thankfully) physical dials and buttons rather than distracting touchscreens for the main controls that are easy to reach and operate. It’s a commercial van that’s easy to live with.
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.
With its hefty 2260kg kerb weight and 3300kg GVM, our test vehicle has a 1040kg payload rating. So, it’s a genuine one-tonner and up to 120kg of that can be carried on Toyota’s triple roof-rack set.
The HiAce is also rated to tow up to 1500kg of braked trailer and with its 4800kg GCM rating (or how much weight it can legally carry and tow at the same time) it can carry its maximum payload while towing its maximum trailer weight. So, that’s more than 2.5 tonnes of combined cargo-carrying capacity, which would comfortably meet or exceed most job requirements.
Its cavernous cargo bay, which offers 6.2 cubic metres of load volume, is accessed from either side through sliding doors with 1010mm-wide openings, or through rear barn-doors with 180-degrees opening to allow easy forklift access.
The cargo bay is 2530mm long, 1760mm wide and 1340mm high, with 1268mm between the rear wheel housings allowing up to two standard Aussie pallets or three Euro pallets to be carried, secured by a choice of six load-anchorage points.
An unusual feature is the roof’s full-length internal lining, which we suspect contributes to at least some suppression of tyre noise emanating from the rear-wheel housings. The walls and doors are neatly lined to mid-height and there’s ample internal lighting.
Generous cabin storage includes a bottle-holder and bin in each front door, small bottle/cupholders in the centre and either side of the dash, plus a single glove box. The console between the seats offers another two bottle-holders plus generous internal storage, which is topped by a large hinged lid that can also serve as a storage tray or work desk.
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 base model LWB HiAce two-seater van comes standard with Toyota’s signature 2.8-litre four-cylinder turbo-diesel (shared by all HiAce models) and manual gearbox for a list price of $51,880, but our test vehicle is equipped with a six-speed automatic and rear barn-doors which raises the price to $54,630.
Other standard equipment includes Vanilla White paint, 16-inch steel wheels with replaceable plastic covers, 215/70R16 tyres and a full-size spare, halogen headlights and DRLs, leather-accented steering wheel with multiple remote functions, power-adjustable lumbar support on the driver’s seat, a USB port and 12-volt cabin sockets, an 8.0-inch touchscreen to control the two-speaker multimedia system with Apple CarPlay/Android Auto connectivity and more.
Recent upgrades to optimise driver comfort include a new 7.0-inch digital driver’s instrument cluster (previously analogue) with nine selectable displays, plus a new refrigerant to improve air conditioning performance (even though the previous system was always ice cold), an electronic parking brake on automatic models to replace the old-school mechanical lever and electric power steering to replace Toyota’s traditional hydraulic power assistance for reduced steering effort and more advanced lane-keeping smarts.
The latest safety upgrades include ‘lane trace assist’ which is designed to help the HiAce remain in the centre of its lane when the adaptive cruise is activated (see Driving).
There’s also a new ‘emergency driver support system’ which works with lane trace assist to detect if the driver has become unresponsive when adaptive cruise is activated. If the driver doesn't respond to audio and visual alerts, the system is designed to activate the hazard lights and bring the vehicle to a safe and steady stop.
Other upgrades include ‘safe exit assist’ which links with the van’s blind-spot monitor to improve safety when exiting the vehicle on the roadside, by issuing alerts when passing vehicles or cyclists are detected.
Cruise control functionality has also been expanded, with automatic grades like ours getting ‘full-speed function’ which can automatically stop the vehicle and then resume moving without the driver needing to intervene. This is especially useful in heavy stop-start city traffic.
Passive safety has also been improved with an additional centre airbag which protects driver and passenger from colliding in an accident.
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.
Toyota’s well-proven (1GD-FTV) 2.8-litre, four-cylinder, turbo-diesel produces 130kW of power at 3400rpm and, in auto models like ours, 450Nm of torque between 1600-2400rpm. Its Euro 5 emissions compliance doesn’t require AdBlue, which minimises maintenance and running costs.
The refined six-speed torque converter automatic offers the choice of sequential manual-shifting. Fuel efficiency is optimised with full torque converter lock-up on fourth, fifth and sixth gears, along with overdrive on fifth and sixth to minimise engine rpm when highway driving. The traction advantage of rear-wheel drive is enhanced by an electronically controlled automatic limited-slip diff.
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.
Toyota claims combined cycle (urban/extra-urban) average consumption of 7.8L/100km. Our 328km of testing was conducted with the engine’s auto start/stop function switched off and comprised the usual mix of city, suburban and highway driving, of which about one third was hauling a near-maximum payload.
Our own figure, calculated from fuel bowser and tripmeter readings, was 10.7L/100km. That’s still within the usual 2.0-3.0L/100km discrepancy between official and real-world figures and not bad for a vehicle weighing more than 2.2 tonnes driven mostly in metro settings and hauling more than one tonne during our test. So, based on our real-world consumption, you could expect a driving range of around 650km from its 70-litre tank.
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 driving position is comfortable thanks to a well-sorted combination of supportive seating with power-adjustable lumbar support, a leather-rimmed steering wheel that’s adjustable for height and reach and a large left footrest for extra support.
The standard kerbside sliding door includes a large window, which partly reduces the huge blind spot over the driver’s left shoulder created by the cargo bay’s solid walls.
Fortunately, the HiAce also comes standard with blind-spot monitoring to ensure safe lane-changing on multi-lane roads, while its rear cross-traffic alert and rear-view camera are equally valuable when reversing out of driveways into busy traffic.
The new electric power steering has more noticeable changes in turning weight compared to the more linear hydraulic system it replaces. Its variable-ratio assistance feels even lighter at parking speeds for easier manoeuvrability and becomes increasingly firm and direct as road speeds increase.
Ride quality is reasonably supple when unladen or lightly loaded and the 2.8-litre turbo-diesel, with its sizeable 450Nm of torque, has strong low-rpm response and displays good flexibility in city and suburban driving.
Internal noise levels below 80km/h are acceptable, but like all vans can become intolerable at highway speeds due largely to tyre roar emanating from the rear-wheel housings. So, if you do lots of highway travel, we’d recommend fitting Toyota’s genuine accessory solid bulkhead to insulate the cabin from this noise.
The six-speed auto’s shift calibrations feel like they’re getting the best out of this engine, particularly fuel-efficient highway travel which requires less than 2000rpm to maintain 110km/h. The sequential manual-shifting function can be handy in certain situations, though, like hauling/towing heavy loads in hilly terrain.
To test its GVM rating we forklifted 830kg into the cargo bay, which combined with our crew of two equalled a total payload of 1010kg that was only about 30kg less than its 1040kg limit.
The stout rear leaf-springs only compressed about 30mm, which left more than 60mm of static bump-stop clearance that was more than enough to ensure there was no bottoming-out on our test route.
Its ample torque made light work of hauling this payload in city, suburban and highway driving as well as our 13 per cent gradient, 2.0km-long set climb at 60km/h, which it easily cleared in third gear.
Engine braking on the way down, in a manually-selected second gear, wasn’t as robust but within expectations given the one-tonne-plus payload it was trying to restrain.
We also tested what we safely could of the HiAce’s latest safety upgrades in road use, which all worked as intended. The ‘lane trace assist’ function when using adaptive cruise control was outstanding, as it resolutely kept the vehicle centred in its lane even around curved stretches of multi-lane highway, without the driver needing to intervene.
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 HiAce comes with a fresh maximum five-star ANCAP rating awarded in 2025 and a top-tier Platinum rating in ANCAP’s commercial van collision avoidance assessment. Both rankings are courtesy of the latest safety upgrades, which enhance the HiAce’s existing suite of features that includes AEB with pedestrian and daytime cyclist detection, speed sign recognition, blind-spot monitoring, rear cross-traffic alert, front and rear parking sensors, reversing camera and lots more.
The airbag count runs to eight - dual front, side chest, side head, centre and driver's knee.
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 HiAce is covered by Toyota's five-year/unlimited km warranty which is in line with competitors like the Ford Transit Custom and Hyundai Staria Load but lags behind the LDV Deliver 7's seven-year term.
Scheduled servicing is a relatively short six months/10,000km interval, whichever occurs first. Capped price for the first 10 scheduled services up to five years/100,000km totals $3650, which is $365 per service or $730 annually.
Toyota currently has 275 dealers across its vast Australian network located in metro, rural and regional areas. Toyota dealerships are also service centres.