Lexus IS350 vs Peugeot 308

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.

The 308 GT Sport plug-in hybrid is a beautifully designed small hatch that is comfortable, enjoyable and easy to drive. The electric motor gives this hatch good acceleration and the equally impressive handling makes for a fun car to drive too. There's good storage, a decent boot and room for even tall people like me in those back seats.

There are two clear drawbacks, however: the price is steep compared to the petrol version; and you'll need to plug the vehicle into a power supply each night if you drive the car daily and want to achieve the 2.4L/100km fuel economy we did in this test.

Last, but probably the most important thing you'll read is that Peugeot will bring fully electric cars to Australia from the second half of 2023, from SUVs to (hopefully) the battery electric version of this very 308 hatch.

If it was my money, I'd hold on - you're going to have your next car for quite a long time so it's worth waiting for the fully electric versions.

Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.

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.

There hasn't been a Peugeot in the last five years that wasn't stunning. There's the high quality feel in their build, and premium yet unique look - like a new Volvo but with more flair. And the 308 hatch and this hybrid version has all of that.

From the sinister looking LED tail-lights to the wide mesh grille, you really get the feeling that Peugeot is hitting its design stride.

This 308 GT Sport plug-in hybrid looks identical to the petrol version with its low, wide stance, and big dark alloy wheels that fill up its arches.

The cabin is sporty, lavish and minimalist with quilted leather upholstery seats, the digital driver display and media screen, and avant garde small angular steering wheel.

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. 

Peugeot's 308 is a small hatch, think Toyota Corolla, only beautiful and more spacious.

So, the 308 can carry five people with just enough head and legroom for a semi-giant like me (I'm 191cm) to sit behind his driving position.

There's good cabin storage with large door pockets, a long and deep storage box under the centre armrest up front along with two cupholders up there, too.

The boot has a cargo capacity of 361 litres, which isn't bad for this class.

To power devices there's a wireless phone charger under the dash, and USB ports for front and rear passengers.

A quirky Peugeot design feature is the low-placed angular steering wheel. I found had to squeeze my knees past to sit in the driver's seat. I'm not sure what size human was used as the test case for this but it wasn't somebody with stilts like mine, I can tell you that.

The 308 GT Sport plug-in hybrid lists for $64,990 before on-road costs. The ‘GT Sport' part of the name is the grade and the hybrid only comes in this grade. In comparison the priciest petrol 308 hatch is the GT Premium for $48,990. The 308 GT Premium also comes in wagon form and that's $50,490. Alas the wagon doesn't come as a hybrid.

Is it good value? Nope. A charge of $16,000 over the cost of the GT Premium petrol version with almost identical standard features is pretty unreasonable. It's also not good value when you could buy a fully electric car about the same size such as a new Tesla Model 3 for $64,300, or a Polestar 2 for even less at $63,900.

However if your heart is set on a PHEV, the main competitor is another Euro hatch - the Cupra Leon VZe from $59,990.

The 308 GT Sport plug-in hybrid standard features include LED matrix headlights, 18-inch alloy wheels and a panoramic sunroof, while inside there are two 10-inch displays - one for the media system and one for the driver's gauges.

It also has black full-grain Nappa leather seats (heated and massaging for the driver and front passenger), a 10-speaker Focal stereo system, proximity unlocking, dual-zone climate control, sat nav, wireless phone charging, plus Apple CarPlay and Android Auto.

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. 

The 308 GT Sport plug-in hybrid has a 1.6-litre turbo-petrol engine making 132kW and 250Nm combined with an electric motor at the front wheels making 81kW and 320Nm.

The combined output of the engine and motor working together is 165kW and 360Nm, and sending that grunt to the front wheels only is an eight-speed automatic transmission.

Acceleration is good. We're talking 0-100km/h in 7.4 seconds which is more than two seconds quicker than the petrol-only variant.

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.

This is what it's all about right? Well, Peugeot says that after a combination of open and urban roads the 308 GT Sport plug-in hybrid will use 1.3L/100km.

At the launch I did a 34km test loop through Sydney's Northern Beaches with a good mix of morning traffic and hilly terrain. At the end of my journey the trip computer reported an average fuel consumption of 2.4L/100km.

I drove the entire loop in Hybrid mode, but there is a Sport mode, a Battery Save mode and EV mode.

If you were to drive in EV mode Peugeot says the electric driving range with a full battery is 60km.

At the start of my drive the battery was about three-quarters charged with the gauges displaying 38km of range.

A mileage of 2.4L/100km is still excellent fuel economy and from experience I can tell you a petrol-only variant would be up around the 8.0 or 9.0L/100km mark for the same trip.

There is a catch, and that is you'll need to plug in your hybrid 308 daily to charge the battery if you plan to achieve the fuel economy I did.

Charging will be slow, however, because Peugeot has fitted this hybrid with a small 3.7kW on-board charger. So, even using a fast charger you'll be looking at more than four hours to fully charge the 12.4kWh lithium-ion battery.

This charging time and small electric driving range in return could be a deal breaker for some and it's the reason why I've given the 308 GT Sport plug-in hybrid a lower mark. If you aren't always charging this car your fuel usage will rocket. New buyers unaware of this could end up using more petrol than ever.

A fully electric vehicle may be a better solution for city dwellers.

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. 

Once you've become accustomed to the strange, low steering wheel with its angular design the 308 GT Sport plug-in hybrid is superb to drive. The suspension is composed and comfortable, the handling is excellent, the steering is light and with the combination of both the electric motor and petrol engine, acceleration is good.

For those of you who haven't driven a plug-in hybrid before I think you'll like the quiet electric power at low speeds and the feeling of ‘instant' acceleration the electric motor adds, but compared to driving a regular petrol car the experience is much the same, just less noisy and smoother.

The petrol variant of the Peugeot 308 achieved low scores when it came to protecting its front passengers in ANCAP's frontal off-set crash test and it was for mainly this reason that the vehicle scored four out of  the maximum five stars in its ANCAP and equivalent European safety rating.

That said, Peugeot Australia has added more safety technology to the 308 than the European version of this car, such as a more comprehensive autonomous emergency braking (AEB) system as standard.

Along with AEB that can also detect cyclists and pedestrians, other standard safety tech includes lane keeping assistance, blind spot warning and rear cross traffic alert.

For child seats there are three top tether anchor mounts across the second row and two ISOFIX points on the outside rear seats.

There are front and side airbags for the driver and co-pilot, while curtain airbags cover the first and second rows.

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.

The 308 GT Sport plug-in hybrid is covered by Peugeot's five-year/unlimited-kilometre warranty.

Peugeot will cover the hybrid battery with an eight-year/160,000km warranty.

Servicing is recommended at 15,000km or 12 month intervals and it can be expensive. Peugeot says the first service will be $425, then second is $771, the next is $425, then at 60,000km the costs will be $900, then $439 for the following.