Lexus IS350 vs BMW 2 Series

What's the difference?

The new-look Lexus IS takes several steps forward over its predecessor - it’s safer, smarter, sharper to look at and still pretty well priced and equipped.

It is feeling its age inside, and the competition has moved on in terms of engines and EV tech. But even so, if I was buying a 2021 Lexus IS, it would have to be the IS350 F Sport, which is just the most fitting version of this car, though the IS300h Luxury does have plenty to like for the money, too.

It may be expensive for a small coupe. And EVs have reframed performance standards to the detriment of most internal combustion engine sports cars like this – at least for acceleration times. But the M240i xDrive Coupe is far more than just about numbers, imbuing the soul and spirit of what makes this brand’s vehicles so enjoyable and memorable to drive.

A unique and most-welcome survivor today, the MY25 makeover takes all that, and improves the interior, to be at the heart of what BMW has traditionally done best (styling aside). We found parting with it at the end of our term very difficult.

You either get the Lexus look or you don’t, and I think this latest version is possibly more agreeable than the IS in years gone by.

That’s partly because the brand has finally done away with the odd spider-eyes twin-section headlights and daytime running lights - now there are more traditional headlight clusters, which look a lot more resolved than before.

The front end still features a bold ‘spindle’ grille, which gets different treatment depending on the grade, and the front, to my eye, looks better than before but still very much stuck in its ways. 

At the side you’ll notice the giveaway windowline hasn’t changed, despite the chrome trim line having broadened as part of this facelift, but you can tell the haunches have muscled up a bit, with the new IS now 30mm wider overall, and the wheel sizes are 18s or 19s, depending on the grade.

The rear accentuates that width, with an L-shaped lighting signature now spanning the entire re-sculpted boot lid, giving the IS a pretty tidy rear end design.

Overall dimensions for the IS are 4710mm long, making it 30mm longer nose to tail (on an unchanged 2800mm wheelbase), while it now spreads across 1840mm (+30mm) and is 1435mm tall (+5mm).

The exterior changes really are impressive - I think it is a more purposeful but also more pleasant looking car now than it ever has been in this current generation. 

The interior? Well, there’s not a whole lot to talk about in terms of design changes, aside from the repositioned and larger media screen - which sits 150mm closer to the driver because it’s now a touchscreen with the latest smartphone mirroring tech. Otherwise it’s a carryover affair, as you can see from the interior pictures.

BMW has iconic form when it comes to coupe, err, form.

Consider the timeless E9 Coupe of 1968, its elegant E24 6 Series successor of 1976 and the chiselled E31 8 Series of 1990.

Even the sinewy E82 1 Series Coupe of 2007 still resonates.

But, despite boasting long-nose/short-tail proportions, today’s G42 looks awkward from some angles, like a Lego version of the preceding F22 of 2014, complete with cartoonishly aggressive detailing that don’t sit happily on the car.

Not Munich’s finest moment. Still, as one of the last surviving small coupes, we’re still very glad it exists. And, in a rare case of more being more, this M240i’s body kit disguises some of the heavy-handedness.

So, what’s new here? Barely earning the facelift tag outside, the MY25 2 Series Coupe gains extra colours, restyled alloys and revised exterior trim, with more body paint in the lower parts and rear apron, as well as high-gloss black for the M240i’s mirror caps.

Inside, the modifications are more profound, updating to BMW’s 'Operating System 8.5', offering improved functionality and all housed within a fetching, single-piece rectangular display screen that also takes in the instrumentation.

Along with a flat-bottomed steering wheel, redesigned air vent knobs, fewer buttons, revised trim and different ambient lighting, they refresh what was a dated-looking cabin.

The interior design of the IS, as mentioned, hasn’t changed dramatically, and it is starting to feel old compared to some of its contemporaries.

It’s still a nice place to be, with comfortable front seats with electric adjustment and heating across all grades, and cooling on many variants, too. 

The new 10.3-inch touchscreen media system is a nice unit, and means you can essentially do away with the silly trackpad system that still resides near the gear selector, so you may still end up bumping it accidentally. And the fact the IS now has Apple CarPlay and Android Auto (though neither are wirelessly connectable) does further its appeal on the multimedia front, as does the standard 10-speaker Pioneer stereo - though the 17-speaker Mark Levinson unit is an absolute blinder!

The centre stack below the media screen retains a CD player, and still has the electromagnetic temperature adjustment sliders as well. That part of the design is dating it just as much as the transmission tunnel console area, which looks a bit out of touch by modern standards, though still incorporates a pair of cup holders and a reasonably large centre console bin with soft armrest padding.

The front doors feature trenches with bottle holders as well, while in the rear doors there is still no drink storage - a carryover annoyance from the pre-facelift model. However, the middle seat in the back doubles as an armrest with pop-out cupholders, and there are rear air vents too.

Speaking of that middle seat, you wouldn’t want to sit in it for long, as it has a raised base and uncomfortable backrest, plus there’s a huge transmission tunnel intrusion eating into leg and foot space.

Outboard passengers also miss out on toe room, which - for my size 12s - is an issue. And it’s hardly the roomiest second row in this class for knee room and headroom, as my 182cm frame was a touch squished behind my own driving position.

Children will be better catered for in the back, and there are two ISOFIX anchorages and three top-tether attachment points for baby seats.

The boot capacity varies on the model you buy. Choose an IS300 or IS350 and you score 480 litres (VDA) of cargo capacity, while the IS300h has a battery pack that robs it of some boot space, with 450L available. 

You could be forgiven for thinking you’ve stepped into a mid-sized rather than small coupe, with today’s G42 being larger in every area except wheelbase than an E46 3 Series Coupe of about 25 years ago.

Length, width, height and wheelbase dimensions are 4548mm, 1838mm, 1404mm and 2741mm, respectively, which make for a surprisingly easy-to-access and spacious cabin – at least for adults up front.

In fact, if nobody is sat behind, even a 200cm-plus individual can stretch out. German cars are great at accommodating the 99-percentile people. And head room’s not bad either, even with the standard sunroof.

BMW’s are about driving, so no shocks to learn that the M240i’s driving position is first class. Sat low and snug, this is a suitably sporty yet incredibly comfortable and high-quality environment, aided by nicely bolstered M Sport seats, a lovely steering wheel and a beautifully presented dashboard. Everything fits like a glove.

If the notion of reducing the number of buttons in the newly-extended electronic interface raises red flags (how many times have we moaned about this in most software-based Chinese vehicles?), rest assured: the M240i’s ergonomics are spot-on.

There are still plenty of switches alongside the iDrive controller and gearshifter for all major vehicle functions, Porsche-style, as well as big old physical buttons for the (soaring) audio, to back up the screen shortcuts for more-detailed functions. It only takes a few moments to learn how easy and intuitive the whole set-up is. BMW leads the way here.

Crisp, clear and colourful digital graphics almost make up for the fact that the gorgeous old analogue dials of old are extinct. Instead, the company serves up unremarkable angular instrument displays and electronic readouts. Very comprehensive and informative, they do the job, but are utterly bereft of character or style. It’s as if Munich’s designers have forgotten how to make things look pretty nowadays. Hang on, do we see a pattern emerging here?

More solid Teutonic sensibility – this time far-more artfully served up – can be found in the excellent ventilation system, ample console-sited storage and pleasingly deep door pockets, highlighting how easy the M240i is to live with.

Crash regulations demand central posts, so no pillarless sides unfortunately in this modern coupe, but frameless door glass is nice (and assists in entry/egress when retracted), enhancing that sporty sensation.

The flipside is poor side and rear vision for the driver, but – frankly – it is otherwise difficult to fault the M240i’s interior layout and presentation.

Even the back-seat area tries hard.

The seats whirr forward and back (slowly) to increase/decrease the narrow aperture as required (using a shoulder-height lever within easy reach), though you’ll need to be pretty flexible accessing the two-person buckets that await. Once ensconced there, there’s sufficient space, padding and support for most folk of up to about 180cm to travel in reasonable comfort, as long as the front-seat occupants aren’t in maximum chaise longue mode and journeys aren’t too long. The quite-upright backrest angle can’t be adjusted.

Just ensure the climate control is on. Things can become pretty stuffy, quickly. And be thankful for the air vents, extended glass area, middle armrest with cupholders and reading lights.

Further back, there is a large-ish, 390-litre boot with a low, wide and flat floor, that can be extended by tugging on a handle to drop the 40/20/40 split/fold backrests as required.

The usual tie-down hooks, lighting and power outlets are present, but you’ll search in vain for a space-saver wheel. Just the dreaded 'tyre mobility kit' that – once deployed – will likely ruin your tyre and cost hundreds to replace. No thanks.

A gashed tyre. No phone coverage. What a way to ruin a great drive day out on your favourite rural roads and in such an immensely enjoyable car. Australia demands a spare tyre.

The good news is, the G42 in 230i and flagship M2 retain the traditional longitudinal-engined/rear-wheel drive set-up, though the M240i has all-wheel drive (xDrive in BMW-speak) to help keep things under control.

All the other existing 2 Series models (basically, those with more than two doors) are transverse/FWD-derived.

Now, the bad news is that, from $102,100 (all prices are before on-road costs), the M240i is considerably more expensive than before. You can no-longer buy a traditional six-cylinder BMW coupe for under six figures. The continuing 230i Coupe, from just under $80K, uses a (albeit lovely) four-pot turbo.

At least the Mexican-made M240i isn’t short of equipment.

You’ll find an 'M Aerodynamics' package, 'M Sport' package that includes drive modes, M suspension with adaptive dampers, M brakes, M differential, M variable steering and M… more.

Additional items include adaptive LED headlights, leather upholstery, electric and heated sports front seats with driver’s side memory, climate control, sunroof, adaptive cruise control, paddle shifters, a 12.3-inch instrument cluster, a 14.9-inch multimedia display, 'Hey, BMW' voice control, a heated steering wheel, a head-up display, auto parking, a surround-view camera, 14-speaker Harman Kardon audio, digital radio, wireless charging, Apple CarPlay/Android Auto, emergency services access as part of a three-year subscription, electric heated/folding M exterior mirrors, ambient lighting, 19-inch alloy wheels and a tyre-repair kit ­– in lieu of a spare wheel.

Our car as-tested also included 'Brooklyn Grey' metallic paint ($1700), 19-inch M light alloy wheels with performance tyres ($2800) and the M Sport Package Pro material/trim package ($1900), helping to bump up the price to $108,500. No reversing nearside mirror-dip is a bit stingy, though.

Still, there’s also a decent wad of advanced driver-assist systems, including AEB front and rear, lane-support tech and various monitors. Read more about that and more in the safety section below.

The near-$20K price jump since 2022 also means the M240i is now more expensive than the Z Nismo and Mustang Dark Horse and is now rubbing shoulders with the (BMW-based and built) Toyota Supra Track Edition and even the MG Cyberster Dual Motor.

And, speaking of electric vehicles, as before, the now-$81K Tesla Model 3 Performance’s astounding 3.1-second acceleration is in another league.

No, the M240i is about traditional BMW values harking back to 'The Ultimate Driving Machine' era. Premium, driver-focused German grand touring sports luxury coupe, cabriolet or convertible.

From that perspective, the two-door 2 Series is the cheapest by a fair margin and in a league of its own.

The engine specs depend on the powertrain you choose. And at a glance there’s no variance between the earlier version of the IS and the 2021 facelift.

That means the IS300 model still runs a 2.0-litre turbocharged petrol motor producing 180kW of power (at 5800rpm) and 350Nm of torque (at 1650-4400rpm). It has an eight-speed automatic transmission, and like all IS models, it is rear-wheel drive (RWD/2WD) - there is no all-wheel drive (AWD/4WD) model here.

Next up the spectrum is the IS300h model, which has a 2.5-litre four-cylinder Atkinson cycle petrol motor teamed to an electric motor and nickel metal hydride battery pack. The petrol engine is good for a 133kW (at 6000rpm) and 221Nm (at 4200-5400rpm), and the electric motor produces 105kW/300Nm - but the combined total maximum power output is 164kW, and Lexus doesn’t provide a maximum torque figure. The 300h model runs a CVT automatic transmission.

The big horsepower offering here is the IS350, which runs a 3.5-litre petrol V6 engine, producing 232kW of power (at 6600rpm) and 380Nm of torque (at 4800-4900rpm). It runs an eight-speed auto.

All models have paddle-shifters, while the two non-hybrid models have seen tweaks to the transmission software that is said to “estimate driver intentions” for better enjoyment. 

As before, the M240i employs a 3.0-litre direct-injection turbo-charged in-line six-cylinder petrol engine, making a heady 285kW of power at 6500rpm and 500Nm of torque between 1900rpm and 5000rpm.

A ZF-supplied eight-speed torque-converter automatic transmission is fitted (and, sadly, no manual is available), driving all four wheels via an AWD system with an M Sport-tuned differential.

There’s still no diesel model, no plug-in hybrid and no full electric (EV) model - which means that while Lexus was at the forefront of electrification with its so-called “self-charging” hybrids, it is falling behind the times. You can get plug-in versions of the BMW 3 Series and Mercedes C-Class, and the Tesla Model 3 plays in this space in full-electric guise.

As for the fuel-sipping hero of this trio of powertrains, the IS300h is said to use 5.1 litres per 100 kilometres on the combined cycle fuel test. In reality, our test car’s dashboard showed 6.1L/100km across a mix of driving.

The IS300 with its turbocharged 2.0L engine is next best for fuel use, claiming 8.2L/100km. On our short launch drive of that model, we saw 9.6L/100km on the dashboard.

And the full-fat IS350 V6 petrol claims consumption of 9.5L/100km, while on test we saw 13.4L/100km.

The emissions for the three models are 191g/km (IS300), 217g/km (IS350) and 116g/km (IS300h). All three are Euro 6B compliant. 

Fuel tank capacity is 66 litres for all models, meaning your mileage range for the hybrid model could be considerably longer.

Rated as a Euro 6d-compliant vehicle, the M240i’s average combined fuel consumption figure is 8.0 litres per 100km, for a carbon dioxide emissions average of 185 grams/km.

With a 52-litre tank brimmed with premium unleaded petrol (98 RON minimum is recommended), that should result in about 650km between refills on average.

Over a mix of urban and highway driving, we managed 8.9L/100km, which is better than the pre-facelift version’s 9.6L/100km. That’s impressive stuff for a performance-orientated sports coupe.

With the engine at the front and drive to the back, it has the ingredients for a pure driver’s car, and Lexus made a bit of a big deal about the new-look IS being more focused thanks to chassis adjustments and track width improvements - and it does feel a pretty nimble and tied-down car in the twisty stuff. 

It is competent at stitching together a series of corners, and the F Sport models are particularly adept. The adaptive suspension in those models includes both anti-dive and anti-squat tech, which is designed to make the car feel solid and flat on the road - and it does, thankfully without feeling twitchy or uncomfortable, with good suspension compliance even in the most aggressive Sport S+ drive mode.

The 19-inch wheels on F Sport models are fitted with Dunlop SP Sport Maxx rubber (235/40 front, 265/35 rear) and there’s plenty of tarmac tenacity.

The grip from Luxury-spec models on 18s could be better, with those Bridgestone Turanza tyres (235/45 all around) proving not quite the most enthralling. 

Indeed, the IS300h Luxury I drove felt very different in character to the F Sport IS300 and 350 models. It was surprising how much more of a plush-focused model the Luxury grade feels, and likewise it wasn’t as impressive in dynamic driving due to the tyre grip and less-enthusiastic drive mode system. The non-adaptive suspension is a touch more jittery too, and while it’s not to the point of discomfort, you might expect better for a car on 18s.  

Across all models the steering is accurate and direct enough, with predictable response and decent feel to the driver’s hands for this electric power steering setup. The F Sport models have even further retuned steering for “an even sportier drive experience”, though I found at times it could feel a little numb for rapid changes of direction. 

As for engines, the IS350 is still the pick. It has the best zest, and feels the most fitting powertrain for this model. It sounds good, too. The auto transmission is pretty clever, there's easily enough pulling power, and it's probably going to be the last of the non-turbo V6s in Lexus's line-up when this cars life-cycle is up.

The IS300's turbo engine was the most disappointing, lacking some urge and constantly feeling bogged down by turbo lag, transmission confusion, or both. It felt underdone in enthusiastic driving, though in dull day-to-day commuting circumstances it came across as more acceptable, though the remapped transmission software was far less impressive in this application than in the IS350.

The IS300h was a lovely, quiet and refined experience all around. It’s the one you should go for if you don’t really care about all that go-fast stuff. The powertrain is proven, it accelerates with nice linear delivery, and at times it’s so hushed I found myself looking down at the instrument cluster to see if the car was in EV mode or if it was using the petrol engine. 

The M240i xDrive’s specification reads like it’s straight out of BMW fan fiction.

Nestled within a shrunken 3 Series-derived 'CLAR' platform brandishing near-50:50 weight distribution, stuffed between beefed-up struts up front, is a strident in-line six, driving the rear or all four wheels via an M Sport differential and held up by a multi-link rear axle.

The promise here is an athletic driving machine on one hand and a cosseting grand tourer on the other, but whether the M240i can walk that fickle red line as effortlessly four years on… well, that’s what we’re here to find out. As we said earlier, sub-3.5s Teslas and the like have really messed with the bang-for-your-buck playbook since 2021.

Luckily, the reality only reiterates the 2 Series Coupe’s place in the sun. Rather than the anodyne (or artificial) whine of an electric motor, here instead is one of the greatest modern engines in the world, mated to arguably the best auto transmission ever in existence.

That’s a terrific start. And, once the button is pressed, the M240i’s performance bandwidth is deeply moving and immensely satisfying.

With a kerb weight of 1690kg, the M240i’s power to weight ratio is an impressive 168.6kW/tonne, helping it to scoot from standstill to 100km/h in 4.3 seconds, on the way to an electronically-limited top speed of 250km/h. Note that the M2 flagship is just 0.3s quicker to 100.

Pottering about town in its most benign ('Eco Pro') setting, the B58-hearted Bimmer slinks about gingerly, purring like a content tabby while skimming along over all sorts of urban roads like a luxury car costing a lot more should, taking everything in its stride. Given this is what driving is like for most people most of the time, the BMW nails it.

More throttle unleashes a surging snarl as the BMW’s speed steps up, with varying degrees of urgency according to the driver’s will and desire. Racing up through the gears, the German straight six feels like it has barely stirred; like things are just warming up.

In conjunction with Sport mode, here is where the M240i really starts to take off, leaping into action, engine roaring as speeds soar as if every road is a stretch of derestricted autobahn. The pace of this coupe is quite remarkable. Planted yet precise, the steering firms up as the chassis hunkers down, and you’re left in awe of how calm and composed the car constantly feels. Even in pouring rain.

As the roads start to snake and twist, the BMW glides through the chosen line with startling grip and confidence, without ever feeling nervous or twitchy in standard traction settings, regardless of surface or weather conditions. That’s the AWD doing its thing.

The M240i is all about nuance and control, whether you’re talking steering, handling, roadholding, braking or electronic intervention. It is refreshing to feel so connected to the driving experience so intimately.

As we said back in 2022, plonking for Sport Plus mode, with the stability and traction nannies neutered, is an easy street to big old oversteer spills and thrills, if so desired.

And then, you’re back in Eco Pro, crawling along in cocooned comfort and relying on the ADAS tech to waft you along, before being back in 'Individual' mode as the road ahead clears, with powertrain in 'Sport' but the suspension in 'Comfort'; just right for times when you just want to streak ahead of slower traffic without pummelling your spine. It’s all there for you. The M240i can do it all.

Inevitably, in Sport mode the ride’s firmness can be fatiguing on bad urban roads. Likewise, the tyre noise over coarse bitumen is tiring over longer drives. And it is all too easy to exceed the speed limit.

Earlier, we said we prefer this over the extroverted, track-focused M2, despite the latter’s astounding speed, thunderous soundtrack and tremendous dynamic capabilities, and that’s because of the M240i’s ability to deliver pleasure with everyday user-friendliness. Plus, the performance flagship is only 0.3s quicker to 100.

Maybe the latest base manual M2 might change our minds.

As it stands, on the move, the M240i is BMW in full flight, staying true to brand values but without frying your nerves or depleting your bank account too much. We love it and you should too.

No ANCAP rating exists for the G42 M240i Coupe in Australia.

However, a 220d diesel coupe (not available here) tested by Euro NCAP back in 2022 managed a four- out of five star result, with pedestrians/vulnerable road user protection and emergency lane keeping recommended for improvement.

The MY25 M240i comes with a raft of advanced driver-assist systems, including AEB (operational from 5.0km/h to at least 210km/h and with cyclist and night-time operation), forward collision warning, front-cross and rear-cross traffic alert, 'Rear Collision Prevention', 'Speed Limit Information', lane departure warning with passive steer assist (operational from 70km/h), lane keep with active assist, blind spot monitor and driver attention monitor.

It also comes fitted with 360-degree view cameras, parking sensors, anti-lock brakes with electronic brake-force distribution and brake assist, stability control, traction control, corner braking and six airbags, made up of dual frontal, side chest and head-protecting airbags for the first row and side chest protecting airbags for the second row.

Speaking of the back seat, a pair of ISOFIX points as well as two top tethers for securing child seats are present.

On paper, Lexus’s ownership offer isn’t quite as enticing as some other luxury car brands - but it has a strong reputation for blissful ownership.

The Lexus Australia warranty period is four years/100,000km, which is better for duration than Audi and BMW (both three years/unlimited km) but not as accommodating as Mercedes-Benz or Genesis, each of which offer five-year/unlimited km warranty.

The company has a three-year capped price servicing plan, with maintenance every 12 months or 15,000km. The first three visits cost $495 each. That’s okay - but Lexus doesn’t offer free servicing like Genesis, and nor does it offer prepaid service plans - for three to five years for a C-Class, and five years for Audi A4/A5, for instance.

There is complimentary roadside assistance for the first three years, too.

That said, the company has its Encore ownership benefits program that allows a number of experiences and deals, and the service team will collect your car and return it, leaving you with a loan car if you need it.

BMW offers a five-year/unlimited kilometre warranty, matching all of its German rivals, as well as three years of roadside assistance.

As always, servicing frequency is condition-based, depending on how they’re driven, amongst other factors, with an indicator on the instrument panel to alert the driver/owner. That said, our advice is to always visit your BMW dealer annually or at every 10,000km, just to be certain.

Capped-price servicing is not offered.

However, the ‘BMW Service Inclusive Basic package’ is available at extra cost, covering scheduled servicing for five years/80,000km, as long as the scheme is subscribed to before the end of the first 12 months of first registration. A 2 Series should cost from $2380.