What's the difference?
Most people that are wealthy enough to be ferried around in a car or limo choose a long luxurious sedan like a Mercedes-Benz S-Class, BMW 7 Series or a Lexus LS. Of course, there are now also SUVs that are used for the same purpose.
But what about a plush people mover? There are very few of these available in Australia and they don’t sell in huge numbers. But Lexus believes there is a market for such a model and it has just launched the big and bold LM. The hybrid-only range is a unique proposition and the LM should hold appeal for limo and tourism operators, and larger cashed-up families.
This initial launch drive was a slightly different format to usual. Given the intended use of the lounge-like model, Lexus arranged for us to be collected in the LM by a chauffeur and ferried from Melbourne to the Mornington Peninsula. From there we got behind the wheel for a brief drive, but many of my impressions will focus on the passenger cabin experience.
Note too that the LM500h does not land until early 2024, so we only sampled the LM350h AWD.
So jump aboard and let’s see if this Lexus can do everything the LS can do - and maybe even a little bit more.
Even amid the near-constant discussion of utes in Australia, 2025 has been a momentous year. We’ve already seen the arrival of the BYD Shark 6, Ford Ranger PHEV and Kia Tasman. Now comes the latest new contender looking to shake-up the establishment - MG.
The formerly-British-turned-Chinese brand has made no secret of the fact its Australian aspirations involve challenging Toyota, Ford and Mazda at the top of the sales charts. To achieve that it knew it needed a ute and needed one quickly.
Luckily for MG, it had a way to shortcut the development and get a new ute into the market in next to no time. It was called the LDV Terron 9, an upsized ute from the commercial vehicles division of SAIC, parent company to MG.
In a throwback to the days of ‘badge engineering’ (if you don’t remember, kids, google ‘Toyota Lexcen’ or ‘Holden Apollo’), the LDV swapped badges and became the MG U9. To be fair, there are some key technical differences that we’ll explain, but the majority of the two vehicles are shared, saving time and money to help MG enter the ute contest as quickly as it could.
The LDV arrived in Australia a few weeks before the MG, but the arrival of the U9 marks a key moment, not only for the ute market, but also the brand itself. MG Australia boss Peter Ciao admitted this is a watershed moment, when MG stops focusing on small vehicles like the MG3, MG4 and ZS and takes on the literal big boys of the car industry.
Before we dive into the details, it must be noted at this point the cars we tested were pre-production examples and while mechanically the same as the vehicles which will ultimately arrive in showrooms, the trim and equipment was not the final version.
The Lexus LM is going to be a niche model. This was not designed to appeal to people that may have bought a Toyota Tarago back in the day, or even a Kia Carnival now.
It has a specific purpose for ferrying people around in absolute comfort and at that, it succeeds in a big way.
It’s just a bonus that it’s great to drive.
Welcome to the automotive equivalent of a business class airline suite.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
I can’t give you a definitive verdict on the U9 based on our limited time behind the wheel. However, what I can say with certainty is MG is serious about making its first ute a success. The price alone demonstrates how motivated the brand is to win buyers over. Undercutting the likes of the Ranger and HiLux with a physically larger ute is a strong opening move from MG.
The clever features, spacious cabin and smart technology will also help to win over buyers, as will the choice of a conventional diesel engine. But none of that guarantees success. As the dominance of the Ford and Toyota demonstrates, ute buyers are loyal and drawn to the most popular options, so MG will need to fight hard for every sale to ensure the U9 isn't lost in the increasingly crowded ute market.
Look, people movers are not considered the sexiest of automotive body styles, but that’s changing.
The Kia Carnival and Hyundai Staria are examples of good MPV design.
And the Lexus LM steps it up again.
It is based on Toyota’s TNGA-K architecture that underpins a bunch of Toyota and Lexus models, including the Lexus RX, and it measures a whopping 5.1 metres long and has a three-metre wheelbase.
It shares its underpinnings with the latest generation Japanese-market Toyota Alphard, which is a cult hit in Australia among the grey import set.
The front-end design is bold, with the latest take on Lexus’ big ‘spindle grille’, pinched slimline headlights and a stubby nose.
I am a big fan of this design. It is far more than a box on wheels and it has quite a bit of presence.
The interior design up front is modern Lexus, with a few familiar Toyota touches, and while it’s not exactly minimal, it’s still visually appealing.
While the fancy tailgate step and the Smart Hatch are the most obvious changes between the LDV and MG utes on the surface, arguably the biggest change is what’s underneath. MG has opted to buck the conventional leaf spring, live rear axle set-up and has instead opted for a more SUV-like independent, multi-link rear suspension.
This explains why such a big ute has a sub-one-tonne payload, but it speaks to MG’s aspirations to try and lure ‘urban’ ute buyers. There is no doubt a large group of ute owners who don’t go off-road regularly and instead use their vehicle as a family transporter.
To that end, opting for a more SUV-like suspension set-up should be beneficial to its on-road manners and unladen ride. Unfortunately, as mentioned earlier, we couldn’t test that because our drive was limited to unsealed roads. But it was enough for us to get an initial impression of how the U9 drives and the early signs are positive.
The engine sounds like a traditional ute, with the gruff diesel ‘chug’ and smooth pulling power. The towing test provided was well below the 3500kg maximum rating, only 1500kg, so naturally the U9 has little trouble pulling the horse float along.
As for the ride on the suspension, it's fairly well composed on a gravel road and offers no obvious signs of struggle on more challenging muddy trails and creek crossings. So there are promising signs that the U9 should be able to hold its own against the more established ute contenders.
While most of the fun happens in the second row of the Lexus LM, there is a lot to like in the front compartment.
The dash is dominated by a large touchscreen that houses Lexus’ latest multimedia setup. The logical menu and uncomplicated sub-menus ensure this is an easy system to navigate. Speaking of, the in-built sat-nav is one of the better systems I have experienced.
Comfort isn’t just the domain of the second row - the driver’s seat is very supportive and comfortable, with power adjustment.
There’s plenty of glass including a smaller front quarter window that helps eliminate front blind spots, so forward visibility is exceptional. Rearward visibility is aided by the digital rear-view mirror that is designed to ensure privacy for second and third-row occupants. You don’t want the chauffeur spying on you while you’re sleeping, do you?
The other big tick for me is the driving position. Other people movers, namely the Hyundai Staria and Mercedes-Benz EQV, have very low window lines and it leaves you with a feeling of sitting on the car, rather than in it. I am sure it helps with extra light and it probably makes it easier for kids to see out of, but from a driving perspective, I find it a little disconcerting.
But the LM has flipped that. The front compartment is designed in such a way that it feels like a cockpit that you’re ensconced in. This helps the driver feel more connected with the car, and in the LM it feels like you’re sitting in the driver’s seat of a sporty sedan, not a five-metre bus. Very well done, Lexus.
And now to the main event - the second row.
Where to begin. Let’s start with space. Because there is so much of it. Unsurprisingly given the seating layout, there is an unending amount of head, leg, knee, bum, shoulder and whatever-else room. I can’t imagine anyone complaining about space back there.
Also, getting in and out is a breeze thanks to the sliding power doors on both sides. These can be opened from the front seat, and via several buttons in the rear.
Those captain’s seats are plush. Not quite Benz S-Class plush, but still.
They are adjustable six ways - power adjustable, of course - and they’re heated and ventilated. They recline almost flat, too, if you need a nap on the way to the country estate. And while you do that you can look up through the split sunroof, or close the shade a number of ways.
Is there a massage function? Of course there is a massage function. And it’s not bad. You can choose two settings - weak and firm.
Adding to the feeling of a business class airline seat, there is a fold-out table in the armrest, although it’s a smallish one. And there is dual-zone climate control in the rear.
There is a roof-mounted control panel for things like climate, sunshades and sunroof blinds, but much of this can also be controlled by the Apple iPhone-like devices clipped into both rear seats. These are closer to the seats, so it is easier to access than the roof.
Another function in the device is the Climate Concierge that features different modes - Dream, Relax, Focus, Energise. Depending on which one you choose, it alters the seat settings, massage, climate and lights to suit.
I love the massively wide side windows that are tinted (or privacy glass), too.
Other amenities include map pockets, knee and roof-mounted air vents and a 14.0-inch display screen that retracts from the roof and connects to an HDMI cable, allowing you to watch whatever you want.
The third row is not as appealing as the second. It is technically a three-person row, but the width and the fact that it has a sizeable gap in the centre suggests that this is best thought of as a six-seater van.
The seats are not as plush of course, so you might not want to spend too much time in that row unless you are a small child. But you do get USB-C ports, cupholders, air vents, lights, sunglasses holder, power side shades and grab handles.
Getting in and out of the third row can take a while. It’s all power adjustable, so you don’t have to lift anything heavy - but it takes a while for the second row seats to move forward and up.
With all seats in place the cargo space is limited. In fact, it’s just 110 litres.
That’s similar to what you get in a seven-seat SUV. But it did fit all our overnight luggage easily.
Drop the rear row and that expands to a maximum of 1191 litres in the 350h or 752 litres in the 500h.
All grades have a space-saver spare wheel.
That SUV-like interior and the larger dimensions make for a very pleasant cabin with loads of space. We didn’t get too much time to experience the multimedia system, but the 12.3-inch touchscreen looks good and operates smoothly, while the inclusion of large physical buttons for the air-conditioning and audio system is a positive for those who value ease-of-use.
There’s a generous amount of room up front, but it’s the back that really impresses. Unlike the sometimes cramped back seats in a conventionally-sized dual-cab ute, the U9 has plenty of legroom and headroom for four or even five adults to fit in comfort.
There’s also plenty of small item storage, including a wireless charging pad (but only on the high-grades) and USB outlets just ahead of the gear selector.
As for the tray out the back, that is so important to ute buyers, it measures 1600mm by 1600mm at the top, but narrows to 1230mm between the wheel arches. Despite its big size, the payload is only rated at 870kg for the Explore, 835kg for the Explore X and just 770kg for the Explore Pro.
However, MG has introduced a party trick no-one else, not even LDV offers, in the tray. At the press of a button, the rear tailgate opens and then with another press a section of the tailgate drops down, revealing a step. While not the quickest way to climb into a tray, it might be the nicest and is definitely the easiest this reviewer has experienced locally.
The even more elaborate party trick the U9 offers is what MG calls a ‘Smart Hatch’. This allows for the rear glass to retract and the bottom of the cabin to recline into the interior, creating a direct connection between the tray and the cabin for especially long items. While MG is, rightfully, very proud and keen to promote the Smart Hatch, it must be noted it is only available as an option on the Explore Pro and costs $5500 (which is nearly 10 per cent of the total cost of the car) so you’ll want to really need the extra space.
From launch there will be two versions of the LM350h Sports Luxury on offer - front-wheel drive and all-wheel drive, priced from $160,888 and $165,888 before on-road costs respectively.
They both have seven seats across three rows and share the same four-cylinder hybrid powertrain, but an even more high-end version is on the horizon.
The LM500h will land in January 2024, priced from $220,888, and it adopts a newer more powerful hybrid powertrain. Something else that sets the LM500h apart is the seating layout - it is a four-seater. Behind the driver and front passenger compartment are two big captain’s chairs that recline flat if required. Decadent luxury. Or so the pictures suggest. We will have to wait until the New Year to sink into the sumptuous seats.
Given the positioning and interior layout, the LM will probably not appeal to people looking at a Kia Carnival, or who would have opted for the departed Toyota Tarago. It will, however, appeal to large families that aren’t short of a dollar, airport limo operators, and even as tourist transport.
Thankfully, there’s a substantial amount of standard gear fitted as standard in the LM.
The only difference in spec between the two 350h grades is the addition of all-wheel drive. Otherwise you’ll find keyless entry and start, front heated seats, automatic retractable side steps, power opening side doors, rear privacy glass, a pair of sunroofs, and semi-aniline or L-aniline upholstery.
Tech-wise, there is a digital rearview mirror, and a 14.0-inch touchscreen, a 12.3-inch digital instrument cluster, a head-up display, seven USB ports, a smartphone charger and a rear 14.0-inch multimedia display.
The 500h adds niceties like a separation partition with elevating and dimmable glass, that doubles as a 48.0-inch widescreen display to watch films and TV, or take conference calls with. It also gets two partition glove boxes, a pair of umbrella holders, two second-row phone chargers, a 23-speaker Mark Levinson 3D audio system and more.
In terms of rivals, there really aren’t many other luxury people movers on the market. Aside from the Mercedes-Benz V-Class and all-electric EQV, there are higher-grade versions of the Volkswagen Multivan, and the LDV Mifa 9 EV.
By not having to worry about developing its own ute from scratch, MG was able to focus on its key selling strength - price. MG has a reputation for its aggressive pricing strategy in Australia, trying to win over buyers with the most affordable or best value products in any given market sector.
To that end, the MG U9 range begins at just $52,990, drive-away, for the U9 Explore, undercutting not only the Terron 9 Origin (from $53,674, drive-away), the Ford Ranger and Toyota HiLux dual-cab pick-up ranges. It's inline with the similarly-sized GWM Cannon Alpha (from $51,990 drive-away).
For $52,990 the U9 Explore comes with 18-inch alloy wheels, side steps, painted tub liner, synthetic leather seats, keyless entry and ignition and a six-speaker stereo with digital radio and wireless Apple CarPlay/Android Auto.
Next up in the range is the U9 Explore X, which starts at $55,990, drive-away. For the extra money you get 19-inch alloys, a cargo slide rail with a hook in the tray, heated front seats, acoustic glass, vehicle app connectivity, voice command, a wireless smartphone charging pad, satellite navigation, Amazon music and the ability to receive over-the-air updates.
The flagship Explore Pro is priced from $60,990, drive-away, and has 20-inch alloy wheels, an eight-speaker JBL sound system, a panoramic sunroof, suede headlining, heated outboard rear seats and the clever tailgate step we’ll detail later.
There are two hybrid powertrains available. Coming next year, the LM500h combines a 2.4-litre turbocharged petrol engine and a hybrid setup, making for power and torque of 202kW and 460Nm respectively. It is all-wheel drive and is paired with a six-speed automatic transmission.
The LM350h comes with a 2.5-litre naturally aspirated petrol engine and a parallel hybrid system, offering up a total system output of 140kW and 239Nm. The 350h comes in front or all-wheel-drive guise and uses a continuously variable transmission (CVT).
MG has plenty of hybrid knowledge, but has opted to keep it simple for the U9. It’s powered by a 2.5-litre, four-cylinder, turbo-diesel engine, which should be popular with the ute crowd.
It produces a solid, if unspectacular, 160kW and 520Nm, enough for it to offer a 3500kg maximum braked towing capacity, which is also something that should be popular with potential buyers.
The engine is paired with an eight-speed (torque-converter) automatic transmission and 'Super Select' 4WD system capable of sending drive to all four wheels.
Like so many new brands in the ute market, MG was keen to highlight that the transmission is built by ZF and the 4WD system is from BorgWarner, both brands with a long history in their respective areas.
As you’d hope with an all-hybrid line-up, the LM excels when it comes to combined cycle fuel efficiency. The 350h FWD sips just 5.5 litres per 100 kilometres, while the AWD version is 5.6L/100km. The 500h is a little thirstier at 6.6L.
Our drive was so brief we did not get to record an on-test fuel figure.
The theoretical range of the LM, considering the 60-litre fuel tank and 5.5L/100km (350h) and 6.6L/100km (500h) fuel consumption figures is about 1000km.
As all three variants are powered by the same engine and all return the same fuel economy. Rated at 7.9L/100km on the combined (urban/extra-urban) cycle.
As our test drive was limited to off-road only we can’t assess its real-world usage, so that will need to wait until we can spend extended time behind the wheel.
Notably, with an 80-litre fuel tank the U9 has a theoretical driving range of more than 1000km, which is great for anyone looking to take their ute on a long road trip.
The LM is yet to be crash tested by ANCAP, and it is unclear if it will be given the fact that it’s a niche model. However, as with other current Lexus models, it has a long list of standard safety gear.
The safety suite, including intersection assist, and a pre-collision system with vehicle, pedestrian, bicyclist and daytime motorcyclist detection.
It also comes with emergency steering assist, full-speed radar cruise control, ‘Curve Speed Reduction’, ‘Lane Trace Assist’ with lane-departure alert, automatic high beam, ‘Road-Sign Assist’ (speed signs only), ‘Emergency Driver Stop System’, a blind-spot monitor and rear cross-traffic alert.
In terms of safety, the U9 has all the usual features you should expect of any new car in 2025. This includes airbag protection for all occupants, plus active safety features including autonomous emergency braking, adaptive cruise control, lane keeping assist and a host of others.
That’s enough for it to achieve a maximum five-star Euro NCAP score and MG expects the same from ANCAP. However, it must be noted Euro NCAP crash tested the LDV e-Terron 9, the electric version of the ute, which obviously has no diesel engine in the front of the vehicle and instead a smaller electric motor and a storage space.
It also worth noting even on our limited, off-road only drive, the driver attention system seemed very sensitive, which suggests better calibration is needed. So we’ll reserve final judgement on the other systems until we can fully experience them, too.
When you buy a Lexus, you get a bit more than a car. The brand has a customer loyalty program - Lexus Encore - and depending on what model you buy, you are eligible for some pretty cool discounts, bonuses and experiences.
There are three tiers, depending on your model. UX, NX, RX and ES fall under regular Encore, and electric models the RZ and UX300e sit beneath Electrified Benefits. But the LM, as well as the LS, LC and LX are under Encore Platinum - the top tier.
That means access to the ‘On Demand’ program that allows access to another Lexus model for a few days or longer. So if you own an LC Convertible but need an RX for a few days to ferry people around, that’s all free. There’s valet parking service loans and more.
It also includes upgrades at Lexus partners. Our launch took us to Jackalope Hotel on the Mornington Peninsula, which is a Lexus partner, and you can get a bunch of extras here as a Lexus owner that other guests won’t get.
In terms of other ownership details, the LM is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.
Lexus is yet to announce the capped-price servicing details for LM, but it is expected to cover five years, and should be in the vicinity of approximately $700 per service.
This is a crucial area for many ute buyers, so MG has tried to make itself as appealing as possible to discerning pick-up prospects.
However, the U9 is covered by MG’s seven year warranty, not the newer 10 year coverage from its passenger vehicles. And even then, that requires you to service the vehicle via an authorised MG dealer for the full seven years to apply.
However, this only applies to non-commercial use vehicles, so while tradies will be covered, fleet buyers are stuck with a five-year warranty.
Over the first five years, if you spend the $2395 capped price costs, you’ll get the extra two years of coverage. The first service is due after 10,000km, but the rest are at 12-months/15,000km.
MG has also worked on expanding its dealer and servicing network to respond to some growing pains and ensure owners aren’t burnt and are more likely to return for their next MG. There are currently 120 MG dealers across Australia with plans to gradually expand that footprint into regional areas following the launch of the U9.