What's the difference?
When the Lexus RZ launched in Australia just over two years ago CarsGuide questioned the Japanese luxury brand’s relatively late arrival to the EV party.
And since then, this large, premium, battery-electric, five-seat SUV has proved something of a niche player with less than 100 sold in 2024 and a similar number in prospect for 2025.
But there’s been movement at the RZ station. This comprehensively updated model features a revised powertrain, retuned suspension, tweaked AWD system and the availability of things like steer-by-wire and a tricky manual mode in the auto transmission.
And yes, Lexus claims it’s more refined than its already smooth and near-silent predecessor.
Scheduled to hit local showrooms in the first half of 2026, we were invited to take a first drive at its global launch. So, read on to see if this could be your next electrically propelled, performance luxury, family favourite.
Mahindra has a solid history in the agricultural world as a builder of farm equipment – tractors, harvesters and the like – and its Pik-Up ute and SUVs have been around for a while.
But the Indian car manufacturer has never managed to establish as much of a sales foothold in Australia's mainstream car market as it’d like to.
Well, the brand is hoping to change all that with the launch of its Mahindra Scorpio Z8L, a proper 4WD wagon that, on paper at least, has a lot to like about it.
It has six seats, a low-range transfer case, an automatic rear diff lock and plenty of standard features for a price-tag at just over $45 grand that won’t make your eyes water.
Read on.
Smooth, quiet, quality sums up this new and improved Lexus RZ. But will tricky new tech like steer-by-wire and a manual mode in the F Sport's auto transmission be enough to sway more premium electric SUV buyers its way? Fold in this car’s value proposition as well as the brand’s spectacular ownership package and it just might be.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
It might seem like I’ve been harsh on the Scorpio but I actually reckon this vehicle is in fact a step in the right direction for Mahindra.
It’s nice enough to drive on-road – refined and comfortable – and it’s also a capable 4WD, with a few issues though…
It’s a good value-for-money prospect but it’s lacking a lot of driver-assist tech that should be onboard every modern vehicle, especially one that will serve as a family mover.
Not a tremendous amount of change in terms of exterior design for this update with the brand’s signature angular treatment retained including a prominent snub nose and 20-inch rims on both variants of the car.
The top-spec F Sport picks up extra aero-focused elements, particularly around the lower bumper at the front, as well as aero covers on the wheels and at the back a spoiler on the tailgate as well as a faux diffuser at the bottom of the lower bumper.
Not much has changed inside either except for a steering wheel-shaped elephant in the room in the form of a yoke that goes with the steer-by-wire function on the 550e F Sport. A significant, eyebrow-raising departure.
However, the curved instrument binnacle, central 14-inch multimedia screen as well as the design of the centre console remain unchanged.
Having said that, there are new ‘laser-patterned’ designs in the door card trims and dynamic lighting graphics in the doors, as well.
The functionality of the touch-dimmable panoramic roof has also been improved and it works beautifully.
The Scorpion reminds me a bit of the early-generation Hyundai Terrcan – long bonnet, generic cabin, and it appears to sit quite low.
The Mahindra SUV has 18-inch alloy wheels, side steps, roof rails and sunroof.
It all looks fine and, anyway, the more interesting stuff on the Scorpion is under the skin – the fact that it is a body-on-frame 4WD.
At a fraction over 4.8m long, close to 1.9m wide and a bit more than 1.6m tall, with a 2850mm wheelbase, the ZR is a sizeable machine.
There’s plenty of breathing space in the front and in terms of practicality the first thing that jumps out, or rather it doesn’t, is the lack of a conventional glove box.
But there is a large box between the front seats to take its place, with the lid (which doubles as a centre armrest) performing the Lexus party trick of being able to open towards the driver or passenger.
There are two cupholders in the centre console with a wireless charging pad ahead of them, plus decent bins in the doors for bottles and other bits and pieces. An additional tray sits under the main, flying buttress-style upper console.
For power and connectivity, there are USB-C sockets for charging and media as well as a 12-volt socket in the lower console section.
Getting into the back is easy thanks to wide-opening doors and a large entry aperture and seated behind the driver’s seat set for my 183cm position I’ve got hectares of leg- and headroom. Shoulder room is best for two full-size adults rather than three, which would be a short-journey squeeze. Three up to mid-teenage kids will be fine.
In terms of storage there are pockets on the front seatbacks, bins able to hold a large bottle in the doors and two cupholders in the fold-down centre armrest. Individual ventilation control for rear seat passengers is always welcome.
Then for power, there are two USB-C outlets and a ‘house-power’ socket underneath them. The 550e F Sport also includes heating controls for the two outer rear positions.
Lower rear axle packaging enhances boot space with a generous 522 litres on offer, expanding to 1451L with the 60/40 split-folding second row lowered. Tie-down anchors and bag hooks are a thoughtful touch and there are handy storage boxes under the flat floor, ideal for charging cables.
The standard power tailgate is nice, while a repair-inflator kit instead of a proper spare isn’t. Braked trailer towing capacity is a handy 1.5 tonnes.
The cabin is tidy and functional. The 8.0-inch touchscreen multimedia system is easy enough to operate without strife and the screen is clear, although it’d be great if it was bigger.
The tan synthetic leather interior trim looks good and superficially the whole interior looks nice, but if you inspect a little more closely the Scorpio’s cabin is missing the storage spaces, USB charge points and build quality of rival SUVs.
There’s one cupholder (between driver and front passenger), the door pockets are narrow and there are few other storage spaces.
With the third-row seats in use, there’s a very small rear cargo area, and those seats don’t fold flat so when they’re not in use they seriously impact the storage space.
As a result, the Scorpio is one of the few modern 4WDs that I’d consider taking out the third row every time long-distance loaded-up travel was on the cards – just so it’s a more practical touring vehicle.
Some features, such as the directional air vents, feel flimsy. Otherwise, the Scorpio’s cabin is suitably practical, rather than overly impressive.
Lexus says final price and specification for the new RZ will be confirmed closer to its local arrival in the first part of next year. But as a guide, the current entry-level RZ450e in Luxury spec costs around $120,000 before on-road costs. Go for the full-fat Sports Luxury and you can add $10,000 for a $130K MSRP.
Let’s take an educated guess and add a not outrageous five per cent price increase for this update which would bump the new RZ500e (to be offered in Luxury and Sports Luxury grades) past a $125K entry point and move the new RZ550e F Sport flagship close to $140K.
If that was the case, rivals will include the Audi Q8 e-tron (from $153,984), BMW iX (from $136,900), Genesis GV70 Electrified Signature ($125,858) and Polestar 3 (from $118,420).
Worth noting you could buy two examples of the Tesla Model Y Dual motor Long Range ($68,900) for the same money.
In this part of the market it’s fair to expect a healthy list of included features and the RZ doesn’t disappoint.
Aside from the performance and safety tech we’ll get to shortly, standard specification highlights include a 14-inch multimedia touchscreen, a digital instrument display, a dimmable panoramic roof, 14-colour ambient cabin lighting, 20-inch alloy rims, LED headlights, cornering lights and a 360-degree camera system.
There’s also synthetic leather trim (synthetic suede on F Sport), built-in nav, power-adjustable heated front seats, multi-zone climate control and more. Not bad.
The Scorpio is available in two grades: the Z8 with a drive-away price of $41,990 (at time of writing) and the Z8L at $45,990 drive-away (at time of writing), which we tested.
Standard features in the Z8L include an 8.0-inch touchscreen multimedia system (with wireless Apple CarPlay & Android Auto), wireless phone charger, a 12-speaker Sony stereo, dual-zone climate control, front camera (intended for off-road use), front and rear parking sensors, and a six-way power-adjustable driver’s seat.
It has a leather wrapped steering wheel and gearshifter, tan- and 'rich coffee'-coloured synthetic leather interior trim, a cooled glove box, sunroof, and six-seat layout (with two captain's chairs in the second row).
It has 18-inch alloy wheels, automatic wipers and projector LED headlights, push-button start, keyless entry and a tyre pressure monitoring system.
Our test vehicle also had floor mats ($200) and side steps (approximately $1250 fitted) as the only accessories.
Exterior paint choices include 'Deep Forest', 'Everest White', 'Napoli Black' (on our test vehicle), Dazzling Silver' and 'Red Rage'.
Both versions of the new RZ are powered by dual permanent magnet synchronous motors, one in the front, one at the back, each producing 167kW and 269Nm.
Total output is 280kW for the 500e (up from 230kW in the 450e), with a little more juice released from the motor combination for the 550e at 300kW.
A single-speed transmission sends drive to both axles and the RZ550e F Sport features ‘Interactive Manual Drive’ designed to give the sensation of manual gear shifts in a BEV. More on that in the Driving section.
The Scorpio has 2.2-litre four-cylinder turbo-diesel engine, which produces 129kW at 3500rpm and 400Nm at 1750-2750rpm.
It has a six-speed automatic transmission, an auto-locking rear diff, and a part-time 4WD system with a dual-range transfer case incorporating low range.
Note: the Scorpio must be in neutral and stationary for the driver to shift into 4WD low-range, but the driver is able to shift between 2WD and 4WD High on the move, up to 80km/h.
Its '4Explor' system’s drive modes include 'Normal' (2WD for sealed surfaces), 'Grass/Snow' (4WD), 'Mud & Ruts' (4WD), and 'Sand' (4WD).
The RZ500e and 550e are fitted with a 77kWh lithium-ion battery delivering a claimed (WLTP) range of 450 and 456km, respectively.
Claimed 10-80 per cent charge time, using its full 150kW DC fast-charge capacity, is 30 minutes or a handy three and half hours at maximum 22kW AC capacity.
Energy consumption on the combined (urban/extra-urban) cycle is 18.2kWh/100km (WLTP) for the RZ500e and 18.4 for the 550e.
Over several hundred kilometres of B-road and freeway running as well as pottering through slow-speed villages on the launch we saw an average of 19.3kWh/100km in the 500e and 20.1 in the 550e F Sport, which is pretty handy.
And the (very) good news is two AC charging cables, installation of a home charger and three years’ complimentary charging across the Chargefox network is included. Nice!
Official fuel use is listed as 7.2L/100km on a combined cycle.
Fuel consumption on this test was 9.6L/100km, which is impressive, especially in light of the fact that we spent the lion’s share of two days during the test period in 4WD low-range.
It has a 57-litre fuel tank, so, going by those fuel figures, you could reasonably expect a driving range of about 593km out of a full tank.
Note: That 593km is a best-case scenario figure and has not had a 30-50km safe-distance buffer subtracted from it, and it also does not take into account the fact that, when being used for touring, the vehicle will be loaded with people, pets, camping gear and more.
It’s a hefty machine at 2.1 tonnes, but Lexus says the RZ550e F Sport will accelerate from 0-100km/h in 4.4 seconds, with the 500e only marginally slower at 4.6sec.
In straight-line acceleration Lexus says front to rear power distribution varies between 60:40 to 100 per cent rear to suppress pitching and “produce a more direct acceleration feel”.
And the RZ is indeed quick. Apply your right foot at just about any speed and the car rockets ahead with satisfying enthusiasm.
The F Sport’s ‘manual’ mode allows you to shift through eight virtual ‘ratios’. Press the ‘M’ button on the console and bingo, you have slim steering wheel-mounted paddles to control them.
At anything above a light accelerator application you’ll feel a jolt on upshifts, but it’s rather unpleasant. Sure, you want some sense of a gear change, but you feel it in your core. Check out the video review to see how much it can shake you around.
A synthetic soundtrack Lexus refers to as the “BEV Sound”, vaguely echoing an internal combustion engine, is fed through the F- Sport’s audio system and it feels thin and brittle to our ears. Again, check out the audio sample in our video review to see if you agree.
You’ll hear the ‘revs’ rising on up and downshifts but there’s no physical accompaniment with the latter as far as we could sense.
Suspension is strut front with double wishbones at the rear and it’s been given a thorough revision in terms of dampers, springs and bushings in both the 500e and 550e F Sport, with the latter copping some additional fine-tuning in each of those areas.
We sampled 500e and 550e F Sport versions of the RZ on the launch drive in Southern Portugal, covering mostly Aussie-compliant roads with lots of bumps and ruts to deal with. And despite its hefty kerb weight the car copes with these imperfections well.
There’s also been some extra attention paid to body rigidity in this updated RZ, specifically reinforcement of upper sections of the nose and around the boot to keep the car more torsionally stiff.
In cornering the drive distribution ratio is between 80:20 front to rear to RWD-only, according to vehicle speed and steering angle, and the car feels composed and predictable.
The F Sport features the steer-by-wire system, using a yoke rather than a conventional steering wheel and the ratio is such that all you have to do is turn the wheel slightly to generate a response.
It’s smooth and progressive but quick at the same time. You soon become used to it.
While it's unusual to see a small yoke in your hands rather than a steering wheel, it means you have an uninterrupted view through to the instruments, which is a nice side benefit.
However, much like the Infiniti Q50’s system before it, there is no mechanical link between the driver’s hands and front wheels. Steering inputs are relayed by electric signals from a torque actuator to a control actuator.
So, while Lexus says “important feedback filters through without the unpleasant vibration effects of a mechanical connection”, and that’s true, by definition there is no road feel and the wheel feels numb from that point-of-view. Worth noting the mechanically steered 500e feels much the same.
Tyres are Dunlop SP Sport Maxx (235/50 fr - 255/45 rr) which grip hard and remain relatively comfy despite their short sidewall running on 20-inch rims.
One price you pay for the steer-by-wire system’s set-up is a substantial turning circle, so be ready for that.
Braking is by ventilated discs all around, which work nicely, and when you’re not using the manual mode in F Sport the steering wheel paddles allow movement through four levels of regenerative braking.
The most aggressive setting will slow you quite markedly but not to the level of ‘single-pedal’ operation.
Additional sound insulation includes an under-seat rear floor silencer, soundproofing in the door trims as well liberal use of damping sheets, foam, silencer pads, insulators and extra seals. And the car is super-quiet, even for an EV.
In terms of miscellaneous observations, the front seats on both versions remained comfortable and supportive over long stints behind the wheel (and yoke!).
Slow speed manoeuvring is assisted by a 360-degree overhead camera view with a translucent trace of the car in the centre, as well as a high-quality reversing camera. Vision across the car and through to the back is good, anyway, but the extra tech helps in the slow speed stuff.
There’s also a sensible mix of physical dials and on-screen controls and the touchscreen menus are easy to use. Especially handy when you’re racing to the function that turns off the intensely annoying over-speed warning.
The Scorpio is a 4WD with a body-on-frame chassis. For those of you who don’t know (no shame in that) a body-on-frame chassis denotes a chassis onto which the vehicle’s separate body is attached, and the engine, wheels, and suspension are fitted.
The set-up is well suited to towing and/or carrying heavy loads, and 4WDing.
It’s 4662mm long (with a 2750mm wheelbase), 1917mm wide and 1857mm high. It has a listed kerb weight of 2100kg and a 12.6m turning circle.
Right, that’s enough (boring?) measurements for now.
This Mahindra 4WD is surprisingly refined on-road: quiet inside, comfortable and with a no-stress engine and a low-key workmanlike Aisin-sourced auto delivering a relaxed, almost lethargic combination on the road.
Steering has a nice weight to it, ride quality is okay, erring on the side of spongy rather than too firm, and some body roll creeps in on more energetic bends.
Overall, however, the Scorpio does satisfactorily well on sealed surfaces. But how does it perform off-road?
The Scorpio handled the undulating dirt track leading to our off-road test site with ease, riding nicely over the light to medium corrugations, and was only ever minimally unsettled by the bumpy terrain.
This Mahindra is able to be shifted between 2WD and high-range 4WD (4H on the dial) so you can keep moving even when the road/track surface changes all of sudden.
The Scorpio has plenty of old-school foundational 4WD mechanicals onboard – low-range and a rear diff-lock (albeit an automatic one) – and it also benefits from off-roading-oriented tech such as its 4Explor system with selectable terrain modes, each of which adjusts engine output, transmission settings and traction control to best suit the terrain, conditions and driving style.
It also has hill descent control and hill hold control.
Even its forward-facing camera comes in handy. I still think of these as more a novelty – I prefer to get out and check the track ahead or get a spotter to do the work for me – but I can see the inherent value of this tech in helping the driver to maintain vision, especially if forward visibility is compromised, say for instance up and over the crest of a steep rocky hill, or edging towards a steep drop into a creek bed.
While the Scorpio’s 400Nm may seem a bit lowly, that torque is on tap across a good spread of revs, and this 4WD does well with what it has. The engine keeps everything moving along nicely.
In terms of off-road-relevant measures, the Scorpio has 227mm of ground clearance, a guesstimated wading depth of 500mm or so (it’s not listed), and approach, departure and ramp-over angles of 27.2 (good), 21.3 (not so good), and 23.5 (okay) degrees, respectively.
The Scorpio is quite an effective off-road wagon and it tackled every obstacle it faced without fail, but it has to be driven with extreme care and laser-focused concentration.
No harm in that, I hear you cry. In response, I say, sure, but it’s bloody exhausting work having to nurse a vehicle through even innocuous terrain in order to avoid nudges, bumps and scrapes to its underbody and side steps.
Not to mention how tiring it is having to anticipate if/when off-road traction control and/or the auto diff-lock will engage – or not – at crucial moments.
Not a major concern on flat ground, but think about the auto rear diff-lock cutting out on you while driving up a rocky 32-degree hill. Yep, I’m old.
Now for some more of the Scorpio’s less-than-ideal characteristics.
1. I hinted at this in the previous paragraph: off-road traction control doesn’t seem as well calibrated as it should be. It’s a bit patchy in its application, and certainly not as seamless as the tech in something like the GWM Tank 300 (yes, I know – the Tank costs about $15,000 more.)
2. The automatic rear diff lock is on the wrong side of clunky, abruptly engaging as it senses wheel-spin then disengaging just as abruptly when it deems the problem over ... even if it isn’t quite over yet.
3. The Scorpio feels low: a lot of underbody components are vulnerable to rocks, tree stumps, track debris, and the AdBlue tank sits low behind the rear left-hand wheel.
4. The side-steps seem very flimsy. The right-hand side-step took a soft knock going over an exposed tree root early on one test day, which I thought nothing of. But when I looked at it soon afterwards, the fasteners had popped out at the front and middle of the sidestep.
I didn't think the bump had been anywhere near enough to result in that.
5. The Scorpio’s standard tyres – MRF Wanderer SUV tyres (255/60R18 “All-Season”) – are not great for hard 4WDing.
They don’t offer anywhere near the degree of grip you need in difficult 4WDing and they quickly became gummed up with mud. The Scorpio does have an underslung full-size steel wheel spare.
The Mahindra Scorpio Z8L has a listed payload of 510kg, and can legally tow 750kg (unbraked), and 2500kg (braked). Gross vehicle mass (GVM) is a listed 2610kg; gross combined mass (GCM) is 5155kg.
I experienced a bit of an issue on a drive home after a few hours of tough 4WDing: 4H kept trying to engage during a 100km stretch of highway.
A dot kept flashing above 4H near the shifter, and terrain modes (other than Normal) kept flashing on the centre console and driver info display and I was being prompted to drop below 80km/h to shift into 4H.
Of course, I’d earlier switched from 4H to 2WD at the end of our filming day (at the 4WD location) and made sure I'd engaged Normal mode before I left the dirt and drove onto a sealed surface.
When the 4H-related issues kept happening on the highway I was able to fix the problem by stopping, switching the Scorpio off and back on again – but I had to do this every 5.0km or so four times before it finally sorted itself out.
To Mahindra’s credit, technical staff members are looking into the issue.
The RZ received a maximum five-star ANCAP assessment in 2022 scoring 80 per cent-plus results in all areas.
As you’d expect, a full suite of driver-assistance tech is onboard including auto emergency braking (AEB) with car-to-car junction, crossing and head-on functionality as well as pedestrian and cyclist detection, adaptive cruise, lane keeping assist, lane-departure warning, blind-spot monitoring, rear cross-traffic alert, driver fatigue monitoring, tyre pressure monitoring and more.
The airbag count runs to nine, including side curtains, knee bags for the driver and front passenger as well as a front centre airbag. There’s also multi-collision brake to minimise the chances of subsequent impacts after an initial crash and an auto emergency call function.
There are three top tethers for child restraints across the second row with ISOFIX anchors in the two outer positions. That’s a comprehensive safety package.
The Mahindra Scorpio Z8L does not have an ANCAP rating because it has not been tested.
As standard, it has six airbags (front, front side and curtain), electronic stability control, front and rear parking sensors, a tyre pressure monitoring system, as well as trailer sway and roll over mitigation, hill hold control and hill descent control.
It lacks a lot of driver-assist safety tech that’s onboard a lot of other vehicles at this price-point, and even cheaper.
The RZ is covered by Lexus Australia’s five-year/unlimited km warranty and there’s an eight-year/160,000km warranty on the drive battery, which is in line with the RZ’s key competitors.
Recommended maintenance interval is 12 months/15,000km, which is relatively brief for an EV.
Capped-price servicing is yet to be confirmed, but for reference the outgoing 450e runs to $395 for each workshop visit up to a maximum of five years/75,000km. That’s sharp pricing in this part of the market.
The RZ also qualifies its owner for ‘Platinum Electrified’ benefits under the ‘Lexus Encore’ ownership program. That means everything from access to “exclusive offers and events” to a complimentary service loan car, five years’ roadside assistance, valet parking at selected locations, airport lounge access and (heaps) more, including the charging benefits mentioned earlier. Hard to argue with that.
The Mahindra Scorpio Z8L has a seven-year/150,000km warranty.
Service intervals are scheduled for every 12 months or 15,000km.
Pricing details were not available at time of writing.