Lexus Lm350H vs Tesla Model Y

What's the difference?

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.

Tesla promised wholesale improvements to the Model Y, and this Juniper update delivers where it counts. But with increased, and sometimes cheaper, competition arriving every day, the pressure remains on Tesla to keep the Model Y ahead of the pack.

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.

We’re not talking massive changes here – more a modernising of the Model Y offering that doesn’t really change the shape or dimensions. 

The most noticeable changes outside are the front and rear light bars, spanning the width of both the bonnet and the boot. They’re a nice touch, and seriously soften what many (including me) consider the worst angles of the Model Y. There are also new headlights, a refreshed front bumper and a new look for the alloy wheels.

Inside, it is the absolute definition of pared-back minimalism. In fact, some could argue it’s gone a little bit too far.

There are no physical buttons anywhere but on the steering wheel, and there's just the one stalk, which has the sole function of operating the indicators. Everything else - mirrors, windscreen wipers, headlights etc - are accessed either through the steering wheel, or through the central screen.

And that includes the gear selector, which is now a swipe-down-for-reverse, swipe-up-for-drive function on the central screen. You might love that, but I don't. I'm sure I'd get more used to it, but initially it did nothing but slow down how quickly I could get the car moving.

Helpfully, the central screen is big and very easy use, and logging into Spotify and Apple CarPlay does largely negate the missing phone mirroring – though if the function exists, I couldn't get it to read my incoming texts to me.

Our test car's cabin was black but highlighted with quality-feeling fabric panels in the doors and on the dash, which are then framed by a metallic-feeling mesh, helping the Model Y's cabin feel definitely elevated from the vehicles that came before it.

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.

The new Model Y stretches 4792mm long, 1982mm wide and 1624mm tall, and the practicality perks of the outgoing model still shine strongly in this new version.

Climb into the backseat and you’ll find a seriously spacious area, and one that feels even bigger and lighter thanks to the completely flat floor and the glass roof.

Even sitting behind my own 175cm driving position, there was ample knee and headroom, and the addition of the 8.0-inch rear screen, which supports two headphone connections, is a clever touch. Gone are the mind-numbing days of staring out the window on long family road trips. Now, kids get access to YouTube, Netflix and a heap of games.

There are also two USB charge points, and a pull-down divider that separates the comfortable rear seats. The door pockets front and rear are sizeable, and cabin storage abounds, including a hugely deep storage bin that separates the front seats.

Open the boot, and remove the shade, and you'll find another fairly massive storage area, including a deep hidden area under the boot floor. But you won't find a spare tyre – instead Tesla offers a 24-hour call-out service for the life of the warranty, where someone will come and repair or replace your tyre, should you have an issue.

Tesla isn't good at detailing specifics about its vehicles, but says you can expect a total 2138 litres of storage space in the Model Y, presumably with the rear seats folded flat and measured to the ceiling.

So yes, this Model Y RWD is the cheapest way into the Model Y family, listing at $58,900 before on-road costs – exactly $10k cheaper than the Long Range All-Wheel Drive.

That’s a little more than some of its core Chinese rivals, like the XPeng G6 which kicks off at $54,800, and a lot more than vehicles like the Leapmotor C10 and Geely EX5. But you could argue that Tesla has more brand standing than them in Australia, given it has been around for so much longer. 

Tesla has also jacked up the included features for this update, with heating and cooling for the front seats, new 19-inch alloy wheel designs, adaptive LED headlights, and a very cool 8.0-inch rear screen that gives backseat riders access to games, YouTube and Netflix.

Tech up front is handled by a 15.4-inch central screen on which you can connect your Spotify or Apple accounts, but there’s no Apple CarPlay and Android Auto. The system pairs with a nine-speaker stereo, and there’s still the best wireless charging pad in the business below the screen.

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).

Again, Tesla keeps its cards close to its chest on specific outputs, but data we've seen points to this Tesla's rear-mounted electric motor producing 255kW, a smallish increase from the 220kW of the outgoing model.

Tesla says that's enough to produce a sprint to 100km/h time of 5.9 seconds.

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.

Again, more cloak and dagger from Tesla here, but most reporting suggests a 75kWh battery is housed beneath the new Model Y.

We do know that our rear-drive Model Y will deliver a claimed 466km driving range on the WLTP cycle.

Charging is capped at a reported 220kW, with the brand suggesting 238km in driving range can be added in 15 minutes when using a 175kW Supercharger. Home AC charging is capped at 11kW.

As mentioned earlier, I spent much more time in the second row as a passenger than I did behind the wheel of the LM350h. But it was enough time to capture some initial high-level drive impressions.

But let’s start in the rear. The ride in the second row is comfortable - as you’d hope. Our trek from Melbourne’s inner north down to the Mornington Peninsula included a lot of freeway, which was smooth. The only thing that disturbed the peace was a chunky bridge join that caused a bit of a thump. But we were hardly disturbed. 

Back in the driver’s seat, there’s a lot to like about how the LM350h drives. First of all, it feels smaller on the road than its ample dimensions would otherwise suggest. It even feels relatively light on the road. 

After the LM, I drove a Mercedes-Benz EQE SUV that has a similar kerb weight (the Lexus is about 2.4 tonnes), and the LM felt lighter.  

The hybrid powertrain is responsive enough, offering decent acceleration from a standing start. The more potent 500h will of course be quicker.

The transition from electric to petrol propulsion is pretty smooth in Lexus (and Toyota) models these days, and the additional noise-deadening materials in the LM ensure it’s subtle.

The 2.5-litre petrol engine is really only noticeable when accelerating hard, and the CVT a slight drone, but it’s in no way unpleasant. 

Otherwise it’s a superbly refined and quiet cabin on all but the absolute worst road surfaces. Whisper quiet power windows adds to that feeling of luxurious refinement.

Given the brief time behind the wheel, we didn’t get to test the handling capability of the LM, so that might have to wait for a review in the New Year. 

The steering is heavily weighted and doesn’t feel overly responsive, but it’s perfectly suited to this sort of vehicle.

That supple ride we experienced in the rear was also evident behind the wheel.

This was especially impressive on a couple of pock-marked peninsular back roads. The ride is also much more compliant than the Mercedes-Benz EQV I tested early in 2023.

Reviewing a Tesla Model Y at the moment is no mean feat. The company's very public figurehead is fighting for a front-row grid position in the battle for world's most unlikeable human at the moment.

But anyway, journalist hat on, personal views aside, Tesla has done a good job with the new Model Y. I actually didn't much like the outgoing model – the ride was too harsh, the steering too darty and the cabin too austere – but Tesla has comprehensively overhauled each of those drawbacks to create a car that is genuinely much better than it has ever been before.

Let's start with the cabin. It's still austere, but the quality feels higher and more premium, and while I'll die on a hill of the screen-controlled drive selector being a bad idea, it is otherwise now a nice place to spend time. The screen and the software powering it largely replace the perks of Apple CarPlay, and the addition of the rear screen is a very good one, too.

But the biggest improvements are in the way the Model Y drives. It's far more compliant on Sydney roads, while the steering sensitivity has been dialled back so it doesn't feel as though you're constantly making corrections.

I also like the power delivery in the RWD. It's not lightning fast, but the grunt is constant and feels really instantaneous and usable.

It's no sports car, though. Our test car took in some of the windiest roads in greater Sydney and beyond, and while the body roll and composure feels on point, the Model Y does struggle with really sharp cornering. The aggressive traction control was a constant passenger on the really challenging stuff.

Overall, the improvements are good, and very noticeable.

This Tesla Model Y wears the same five-star ANCAP safety rating as its predecessor, awarded back in 2022.

Everything you expect is present and accounted for, including seven airbags, auto emergency braking (AEB), lane departure warning and assist (the latter being a little too panicky for my tastes) and cameras front and rear.

Special mention for the brand's semi-autonomous functionality, which – while not perfect – is among the best I've experienced. On the highway, it will stay in the centre of its lane, rather than the bumper-bowling-style swaying that some systems serve up, and change lanes for you when you indicate.

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.

Underwhelming, I'm afraid. A four-year/80,000km warranty might be the worst offered by any mainstream brand in the country. For the record, five-year/unlimited km is now the minimum standard, with many brands far exceeding that.

Servicing intervals are a bit scattered, with the brand instead listing when things need to be done, rather than a traditional schedule.