What's the difference?
For Lexus, 2025 was a year of celebration. It marked not only its 35th anniversary in Australia but was also the year when total sales surpassed 200,000 since its local launch and electrified powertrains took a record share of more than 76 per cent of the fleet.
In other words, three out of four Lexus vehicles sold were either HEV (Hybrid), PHEV (Plug-in Hybrid) or BEV (Battery) with the most popular model for more than a decade being the mid-size NX which represents more than 40 per cent of the Japanese marque's sales. The NX was also calendar year 2025’s top seller in Australia's ‘Medium SUV over $60K’ segment in which it competes against a bewildering number of rivals.
Clearly, the NX has hit a sweet spot with prestige SUV buyers, with the vast majority choosing HEV or PHEV powertrains. We were recently handed the keys to one of the latest NX offerings to find out why this stylish five-seater has such enduring appeal for couples, families, weekend travellers and business professionals.
One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?
When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.
The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.
As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.
This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.
Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.
The NX 450h+ Luxury combines high build quality and upmarket looks with plug-in hybrid convenience/performance/economy and numerous luxury appointments. It’s a competent all-rounder that's difficult to fault and clearly meets the needs of many prestige mid-size SUV buyers.
Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.
While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.
The exterior is a sculptured blend of sharp creases and flowing curves which create a sporty and sophisticated appearance that clearly appeals to many buyers.
The interior looks and feels about as spacious and airy as you could realistically expect in a mid-sized SUV, which is enhanced with the roof open and sunshine pouring in.
The boldly contrasting two-tone grey and camel interior trim in our test vehicle adds to its visual appeal although we suspect such a bold colour choice could also be a stain magnet in everyday use, particularly for young families with lots of sticky kids’ stuff onboard.
Look closely and quite a lot has changed. This is really a story of doing a facelift right. Lexus has kept all the great-looking bits of the car that launched in 2013, like its striking side profile and angular accents, while dumping most of its least popular elements like the spidery front light-clusters and busy front splitter, in favour of something more refined and conservative.
It even adds some new flair in the rear three-quarter, with dramatic LED light-clusters working their way into a trendy highlight strip across the boot lid.
These changes all add up for a much tougher, sportier, and nuanced design compared to the outgoing car. One that manages to make an eight-year old design look as contemporary as ever.
I even liked our test car in its plain black shade, although I'm less sure about those conservative-to-a-fault, almost Camry-esque alloy wheels.
On the inside, sadly not a whole lot has changed. The busy design looked dated when this generation of IS launched in 2013, and it still looks dated now.
The visual assault of buttons, toggles, displays, textures, and trims is a lot to take in, and makes the cabin feel smaller than it is.
It probably didn’t help the sensory overload of this car’s interior as I hopped out of the stripped-back interior in the Tesla Model 3 I had the week before.
My less-than-impressed brother, a student of design, described the IS’s interior best when he told me “It’s a bit maximalist, don’t you think?”
If nothing else, at least Lexus hasn’t blatantly imitated anyone else when it comes to its interior, but the brand remains firm on dorky design items like the laptop touchpad, redundant drive-select dial, and odd vacant panels under the climate unit which do it no favours.
A welcome upgrade for the 2021 model year is the new media screen, a highlight piece perched atop the dash. It’s bright, has excellent contrast, and doesn’t seem to fall victim to glare.
The Apple CarPlay support I used was seamless and sharp and made the most of the available real-estate in its widescreen layout.
I somehow didn’t mind that the instrument cluster in this base car is analog. It almost suits the IS’s character better than a digital set-up would. Also offered is a small information display between the dials which I used for monitoring the hybrid drive.
A final note on the IS’s design. The fit and finish is quality, inside and out. It leaves you with an impression that this is an immaculately built vehicle, one that should be a must for all luxury cars, and always a strong point for Lexus.
Its compact dimensions of 4660mm length, 1865mm width and 1660mm height make the usual driving chores in congested urban settings, particularly tight inner-city streets and parking spaces, much easier than a full-size SUV.
With its 2050kg kerb weight and 2540kg GVM, it has a load capacity of 490kg of which up to 75kg can be carried on the roof rails using approved racks.
While almost half a tonne of load capacity may seem ample, keep in mind that the combined weight of five large adults could reach that limit before you could start loading their luggage.
It’s also rated to tow up to 1000kg of braked trailer, which would be ideal for hauling small trailers with a recreational focus like fold-out campers, jet-skis, trail bikes etc. However, Lexus does not publish a GCM figure, so for weekend escapees we don’t know how much it can legally carry and tow at the same time.
There’s more than adequate space for the driver and front passenger, along with storage that includes a bottle-holder and bin in each door, overhead glasses holder and a single glove box.
The centre console has two cupholders and a deep box with padded lid that doubles as a comfy elbow rest. You’ll also find a quartet of USB ports, a 12V socket and wireless phone charging pad.
The rear bench seat is surprisingly accommodating for tall people, given I’m 186cm and when seated behind the driver’s seat set in my position I still have sufficient knee clearance and headroom.
However, with three up, those in the centre must compete for shoulder space plus have their feet either side of the transmission tunnel and knees together between the front seat backrests. So, three adults is okay for short trips but should be capped at two for longer drives.
Rear passenger storage includes a bottle-holder and bin in each door, pockets on both front seat backrests and two cupholders with the centre seat backrest folded forward. The rear of the centre console has adjustable air vents, rear seat heating controls, another 12V socket and a pair of USB ports.
The power tailgate can open by waving your foot under the rear bumper (useful when hands are full) to gain access to the rear luggage area, which provides numerous internal hooks for securing cargo straps or nets plus underfloor storage for the charging cables and more.
This luggage area offers up to 520 litres (more than half a cubic metre) of load volume with the rear seat upright. It expands into what is effectively a small van when the rear seat is folded flat, which can carry everything from a mountain bike to flatpack furniture.
Well, the IS is a sedan, so it doesn’t quite have that high-riding appeal of an SUV, and for this update it has even leaned further into its low-slung proportions with a roofline that descends a further 15mm and a boot lid which is 31mm lower overall.
As with the previous car, the interior is quite closed-in thanks to that busy dash design and large centre console. Rather than feeling claustrophobic though, it is best described as cosy, with lots of plush finishes throughout the doors and centre stack befitting a luxury nameplate.
Adjustability is great for the front two occupants and there are two large bottle holders between the seats, a large but shallow console box under the armrest, bottle holders with adjoining bins in the doors, and a smallish glove box.
That’s about where storage ends though, with no extra trays or bins in front of the oddly placed shifter, just an awkwardly finished plastic panel where it feels like a little tray or storage cutaway should be.
The touchpad for operating the media screen joins an unnecessary drive-select cluster in eating up centre console space where there could be more storage.
The rear seat is quite limited on space despite being lavishly trimmed. I fit behind my own (182cm/6'0") driving position with little knee or headroom to spare.
Again, it’s cosy and very comfortable, but if you're taller or wider than me you may run into issues.
The centre rear seat is all but useless for adults, with the IS’s rear-drive architecture necessitating a huge transmission tunnel that almost comes as high as the seat base itself.
Storage is limited to pockets on the back of the front seats, small bins in the doors that double as handholds, and a drop-down armrest with two bottle holders.
There are no power outlets for rear passengers, but there are dual adjustable air vents.
Boot space is 450L which is a little small for the class. It’s impressive the hybrid only managed to lose 30 litres compared to petrol-only IS variants, though, so best to count your blessings.
The largest CarsGuide travel case easily fit in the wide but short available space.
Our test vehicle is the NX 450h+ Luxury (launched late 2025) which sits one rung below the premium 450h+ F Sport on the model ladder. Even though they share the same PHEV all-wheel drive (AWD) underpinnings, the Luxury’s emphasis on providing more affordable luxury at the highest level is reflected in its list price of $84,500, before on-road costs, which is $11,500 less than its F-Sport sibling. Our example is finished in optional 'Graphite Black' prestige paint available at extra cost.
As you’d expect there are plenty of items on the standard equipment list including 18-inch alloy wheels with 235/60 R18 tyres and an inflator/repair kit (no spare), heated door mirrors, tilt-and-slide moonroof, a rear spoiler, roof rails and LED headlights/DRLs to name a few.
Step inside using the smart entry and start function and drivers are treated to luxuries like front seat heating/ventilation with 12-way power adjustment (eight-way passenger), a heated steering wheel with paddle shifters and power height/reach adjustment, digital multi-information display, an electric parking brake, traffic sign recognition, tyre pressure monitoring and active parking aids.
There’s also outer rear seat heating, dual-zone climate control, wireless phone charging, multiple USB ports, 10-speaker premium sound, a 14-inch multimedia touchscreen with multiple connectivity including wireless Apple CarPlay/Android Auto and lots more.
To be precise the variant we’re looking at here is the IS 300h Luxury. It’s the base IS trim with the hybrid powertrain and it wears a before on-road costs (MSRP) of $64,500.
Base car or not, the new IS is very well specified. Now standard are 18-inch alloys (up from 17s), full LED headlight clusters, eight-way power adjustable front seats, dual-zone climate control, 10-speaker audio system, and importantly a brilliant new 10.3-inch multimedia screen with widescreen Apple CarPlay, Android Auto, built-in navigation, and DAB+ digital radio support.
Keyless entry and push-start ignition also continue to be offered, as well as a leather-look interior trim which in our car was in a rather contrasting 'Ochre' colour option.
Our IS 300h was also fitted with the creatively named ‘Enhancement Pack 1’ which adds an openable moonroof for $2000. The significantly more expensive ‘Enhancement Pack 2’ ($5500) adds the moonroof alongside 19-inch alloys, upgraded LED headlights, interior ornamentation, scuff plates, a panoramic reversing camera, 17-speaker premium audio, ‘leather-accented’ interior trim, ventilated front seats, and an electric rear sunshade.
These packs are seemingly largely unnecessary but are also very cheap for a brand at the premium end of the market.
Lexus has made pretty much all of its high-end active safety equipment standard on this base ‘Luxury’ for 2021, alongside some previously unavailable tech which we’ll take a look at in the safety section of this review.
At this price the Lexus IS 300h goes into battle against the Mercedes-Benz C 200 ($66,900), BMW 320i ($70,900), Audi A4 35 TFSI ($55,900), and the ever-looming threat of Hyundai’s Genesis, which offers its similarly-sized G70 in base form at $59,300.
Some of these base-spec rivals are cheaper, some are more expensive, but did you notice none of them are hybrids?
Access to Toyota’s affordable and popular hybrid drive is a real point of difference for the Lexus brand, and we expect it’s a key drawcard for the loyal customer base. More on that later.
The sophisticated PHEV drivetrain with electronic AWD comprises a 2.5-litre four-cylinder petrol engine that delivers 136kW of power and 227Nm of torque to the front wheels through a Continuously Variable Transmission (CVT).
There’s also electric motors front and rear, fed by an 18.1kWh lithium-ion traction battery that can provide limited electric-only driving range.
The front electric motor, which assists with driving the front wheels through the CVT, produces 134kW/270Nm while a smaller one exclusively drives the rear wheels with 40kW/121Nm. Although the combined output from these three power sources is 310kW, Lexus claims a total system output of only 227kW to optimise efficiency and reliability.
The petrol engine and electric motor outputs are electronically synchronised and traction is continuously monitored to automatically vary the amount of power being sent to the front or rear wheels to optimise stability and traction in all conditions.
There’s also a choice of drive modes comprising 'Normal', 'Sport' and 'Eco' and paddles on the steering wheel allow manual shifting of the CVT 'ratios' for a more engaging drive, or to increase the regenerative braking effect (like using lower ratios on descents etc).
Several operational modes can also be selected including electric-only driving (we covered 60km on one full charge and 56km on another) and two modes of hybrid driving, plus battery charging while driving courtesy of the petrol engine which during our test charged the battery from near zero to 100 per cent in 56km.
There’s also external plug-in charging of course. At home we used the three-pin domestic wall socket compatible 10A charger/AC Type 2 cable supplied with the vehicle, which took about six hours (at a tiny 2.3kW) to charge from 35-100 per cent.
The IS 300h does stand out from the luxury sedan crowd by offering a hybrid drivetrain at a reasonable price. Some rivals offer plug-in options further up the price scale cementing them as a niche option, but the beauty of this Lexus is its very mild $3000 price jump over the base petrol car.
The base car’s 2.0-litre turbo is dumped in favour of a 2.5-litre non-turbo Atkinson-cycle four-cylinder hybrid set-up similar to the one proving popular in the Toyota Camry and RAV4.
The petrol engine produces 133kW/221Nm on its own, and the electric motor produces 105kW/300Nm. Toyota says the “combined system output” of this is 164kW.
Either way, that's less than the base 2.0 turbo. The 300h also swaps out an eight-speed torque converter automatic in favour of a continuously variable transmission. Rare in a rear-wheel drive car.
Lexus claims average combined consumption of only 1.3L/100km, achieved in ideal lab conditions which is largely irrelevant. When we stopped to refuel after 424km of real-world testing, which included our usual mix of suburban, city and highway driving and switching between the different modes (including 116km of electric-only driving), the dash display was showing 5.7L/100km.
That was close to our own figure of 5.4 calculated from fuel bowser and tripmeter readings, so based on our test consumption and depending on the mix of drive modes used, you could expect a realistic driving range of up to 1000km from its 55-litre tank which prefers 95RON premium petrol.
As you might hope this hybrid IS has an astoundingly low official/combined fuel consumption rating of 5.1L/100km.
I was pleased to find that after a week of mainly urban driving conditions, our IS was returning a figure of 6.9L/100km. Not bad at all, especially for a class where fuel consumption can get a little out of hand with turbocharged engines or V6s.
Of course, using the hybrid system to your advantage over the long term will get this number much lower, as I discovered on my long-term test of the Toyota Corolla hybrid which essentially uses a smaller version of the same system.
Certainly, if fuel consumption is a high concern, you’re better off with this car than the top-spec V6 (IS 350) which will easily see consumption enter double digits.
Lexus recommends a minimum RON rating of 95 for the IS 300h, and the fuel tank is 66 litres regardless of variant, giving the hybrid an impressive theoretical range of around 1000km.
The cabin is what you might call ‘cosy’ for tall people like me (186cm) but there’s still adequate room to find a comfortable driving position.
The ride quality is noticeably firm, which contributes to its sporty feel. The steering is nicely weighted with good response and braking is reassuringly strong.
Acceleration in full-electric and hybrid modes is brisk but not exceptional and about what you’d expect from this powertrain, which engages the rear electric motor for standing starts and other situations to ensure all-wheel drive traction is being deployed when you need it most.
We sampled the different drive modes, with 'Sport' providing a more engaging feel (particularly when manual shifting using the paddle shifters), 'Eco' producing a more subdued response to optimise range and the default 'Normal' providing a pleasant compromise.
Even so, despite its technical wizardry and generous choice of driver preferences, we reckon most daily driving owners would simply plug-in and charge each night, start off in electric-only mode and if needed continue in ‘Normal’ hybrid mode.
There is no doubt the IS 300h is capable. You can feel it through the car’s solid rear-drive underpinnings, silky smooth steering, and reactive chassis.
What this car doesn’t offer is excitement in quite the same sense as many of its rivals. That’s down to this hybrid’s drivetrain. It just doesn’t have that powerful follow-through in the same way turbocharged BMWs or Audis or Mercedes do.
If it’s that 'sports luxury' experience you’re seeking better off looking to the base 2.0-litre turbo or the V6 and their eight-speed automatics.
The 300h does offer something a bit different. The gentle refined efficiency of Toyota’s signature hybrid system in a luxury rear-drive package that’s smaller than this car’s ES bigger brother.
While it may feel capable thanks to the lighter suspension components and altered track that the brand has committed to for this update, the hybrid drive matches this car’s softer character brought about by its gentle suspension tune and light steering.
This is an easy car to drive around a city, it filters out bumps nicely, while offering near silence in the cabin and breezy steering for every day scenarios like manoeuvring in tight parking lots.
The CVT auto and instantaneous torque available from the electric motor make it best at traffic speeds, being both reactive and predictable, with silent acceleration when inching forward at the lights or cruising along at 50km/h.
As you might expect though, the wheezy Atkinson cycle engine and CVT conspire for a noisy and less than engaging experience under heavy acceleration.
It’s not as though you’re rewarded with particular vigour either, with this combination being a bit sluggish when a lot is asked of it.
It loses its reactivity and refinement at higher speeds or in the corners on country roads as the transmission elastically tries to keep up with the demands of the driver.
Still, few luxury sedans are quite as purpose-built for the toils of a city, and if you want to get drawn into this car’s hybrid drive antics, it’s easy to make a game out of saving fuel by trying to rely on its low-speed electric motor capability.
Really then, it leans into its urban luxury appeal. A luxury sedan for the streets of Tokyo. An ideal car in this class for the urban environment.
If you don’t care for the thrill of a turbocharger or frequently seek to explore the twists of your nearest B-road, you could do worse than the comfort and ambiance the 300h offers.
The NX has a maximum five-star ANCAP rating (awarded 2022), eight airbags and a suite of active safety features including AEB with pedestrian and daytime cyclist/motorcycle detection, steering assist, lane-keeping, safe exit assist, rear cross traffic alert, blind-spot monitoring, traffic sign recognition, LED DRLs, tyre pressure warning and lots more. The rear seat is equipped with two ISOFIX child seat anchorages and three top tethers.
A full active safety suite is now standard across the IS range, including freeway-speed auto emergency braking with pedestrian detection (works during the day and at night) and cyclist detection (works during the day only), and a new intersection braking feature, lane keep assist with lane departure warning, blind spot monitoring, rear cross traffic alert with reverse auto braking, traffic sign recognition, adaptive cruise control, and auto high-beam assist.
There is also an auto SOS function, as recently added to the Toyota Yaris Cross, which automatically triggers if an airbag is deployed. On the topic of airbags, every IS has a thorough suite of 10 (dual front, dual side, quad head, dual front knee).
This all adds up with the standard array of stability, brake, and traction controls for a maximum five-star ANCAP safety rating, although the IS was last assessed way back in 2016.
The IS is built in Japan.
Comes standard with a five years/unlimited km warranty. Same applies to the lithium-ion traction battery, which is eligible for additional warranty coverage of up to five years (so 10 years in total) based on annual inspections.
Scheduled servicing is every 12 months/15,000km, whichever occurs first. Capped pricing, which applies to the first five scheduled services up to five years/75,000km, totals $3225 or an average of $645 per service.
Lexus gets slightly ahead of the luxury pack with an extra year of warranty. While BMW and Audi still sit on three, Lexus offers four, but it is limited to 100,000km and is still outdone by Mercedes-Benz and Korean newcomer, Genesis, offering five-year/unlimited kilometre promises.
The IS has capped price servicing fixed at $495 for the first three years of ownership with roadside assist, and the brand will even pick up and drop off your car, or offer a free loan car during every 12 month or 15,000km service.
It’s worth noting that German rivals offer pre-paid service packages out to five years, and Genesis is trying to make a splash with free servicing.
Lexus does offer a luxury ownership program dubbed ‘Encore’ which includes invites to experiences and certain partnerships with restaurants and the like to keep potential owners enticed.