Lexus LS460 vs Peugeot 408

What's the difference?

Almost 30 years after Lexus launched its original LS flagship sedan, the fifth generation of the car has arrived in Australia in what appears to be the brand’s never-ending battle to hunt down and beat Mercedes-Benz, BMW and Audi at their own game.

In some markets it looks as though Lexus is making headway. In the United States last year Mercedes-Benz was the best-selling luxury brand, followed by BMW and then Lexus. To give you even more insight, 50 per cent of all Lexus sales globally are in the US.

The story is different in Australia, with Lexus hardly a threat to the big three Germans, selling about a third less each month.

The Lexus LS is the Japanese prestige brand’s flagship and comes with a price that nudges up against formidable rivals. There’s the Mercedes-Benz S-Class, BMW 7 Series and Audi’s A8. Only the best cars from a few of the best brands in the world – no pressure, Lexus.

This may even be a reason to buy one – in that it’s not one of the traditional three. You could see Lexus as the popular underdog that in some ways does a better job than the usual suspects. A people’s favourite perhaps?

Just look at how often it’s mentioned in songs. According to lyrics.com.au the word Lexus has been used in 873 songs. Meanwhile Mercedes Benz appears in 500, Audi in 402 and BMW in 307.

With all this in mind we headed to the Australian launch to drive the LS 500 and its hybrid twin the 500h.

Unveiled globally in 2022 before arriving here in late 2024 as a plug-in hybrid GT, the Peugeot 408 has been a niche player for the long-established French brand with less than 100 examples finding homes here last year.

But 2025 marked the transition to a new ‘plug-less’ mild-hybrid powertrain for the mid-size crossover-style SUV with the hope it may take a bigger swing at segment heavyweights.

We spent a week with the current 408 GT Premium Hybrid to see if its efficiency-focused petrol-electric set-up has what it takes to win a spot on your upscale five-seat SUV shopping list.