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.
When the GLB arrived in Australia in 2020 it did so to much fanfare as the little premium SUV which could do it all.
It had seven-seats, ideal dimensions slotting underneath the mid-size GLC, the option of all-wheel drive, and even a go-fast AMG version to boot.
Now, the clever little luxury SUV can add another headline feature - it’s gone fully electric.
The EQB, like the EQA before it, follows the formula of its donor car to a T, being familiar for an existing Mercedes buyer whilst also making the jump to a fully electric drivetrain.
For now it comes in two variants, a two-wheel drive with seven seats, and a five-seat all-wheel drive which leans more on the performance aspect of its electric drivetrain. Is the trade-off worth it?
The answer is: It depends. Read on to find out why.
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.
I really liked the combustion version of this car, the GLB, for its funky style and flexibility and I was pleased to find how easily Mercedes has made the conversion to a fully-electric layout for the EQB.
Despite a tall price, the EQB 350 is a compelling option for those seeking something a bit more luxurious than the Tesla Model Y, something a bit larger than the Volvo XC40 Recharge, and something a bit smaller than the Audi e-tron or the EQC.
The main trade-off for this 350 variant is the loss of the seven-seat layout in favour of more performance. Instead it offers a huge boot, has a sufficient range for city-based buyers, and offers surprising levels of fun, too.
Just make sure you’ve considered its rivals which may potentially offer more range or features for the same money.
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 EQB has a very predictable design in that it doesn't stray from the combustion car’s formula. At all.
The only evidence from the outside this is the electric version is the blanked out grille, and closer observers might notice the rear light bar which cuts across the boot lid is different from the split tail-light design which appears on the combustion car.
Still, to my eyes, the GLB is a cool design with its upright boxy look bucking the curvaceous trend of most EVs, and, indeed, the rest of the Mercedes line-up.
Its rebellious streak makes it one of the most appealing SUVs in Mercedes’ current range, and it comes with a bit of toughness which is missing from the EQA.
If nothing else, it’s a completely different look from Tesla’s amorphous Model Y, and this may be enough to appeal to some.
Inside is identical to other Mercedes models which sit on the MFA2 small car platform, immediately setting itself apart with the big high-resolution screens, glitzy ambient lighting, as well as an abundance of chrome and gloss black.
It’s designed to impress from the first time you hop in, and there’s no doubt it does, but it may be a bit over-the-top for some, particularly fans of the more conservative Mercedes designs of eras past.
The chrome in particular becomes a bit of a problem, as it has an annoying habit of catching the reflection of the sun and sending it directly into the driver’s eyes.
It all feels as plush as a circa-$100,000 luxury car should though, with the ‘Artico’ seat trim being one of the better synthetic options on the market, and soft-touch surfaces throughout the cabin selling the Mercedes promise.
The GLB toughness is even reflected in the chiselled out finishes in the door, dash, and centre console, helping to set it apart from the tamer EQA.
The software is also fast, high resolution, and well presented, which bodes well given the amount of screen real-estate, and the amount of customization is impressive, too.
Again, there are many who will prefer its look and feel to the Apple-store chic of the Tesla Model Y, or the pared back Scandinavian approach of the XC40 Recharge, but also those who won’t. Like many new Mercedes products, it continues to polarise buyers.
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.
This should be the GLB’s calling card. It’s a car with an ideal footprint, not as wide or as long as most mid-size SUVs, whilst also offering a larger cabin and boot.
The big drawback for this variant in particular is the lack of a seven-seat option, as the all-wheel drive requires the under-floor space which is required to give rear occupants legroom.
It’s a shame, too, because I found the two rear seats in this car’s GLB combustion equivalent to be surprisingly accommodating for even adults.
As a result of these missing seats, though, the full volume can be exploited in the boot, which comes in at a whopping 495 litres.
It’s rivalled by the Model Y, which also has a cavernous boot, although it has a much larger storage area than the Volvo XC40.
As an added bonus, there is a decent under-floor storage area which has enough space for all your charging cables, although there is no so-called ‘frunk’ with what is normally the engine bay taken up by cooling and auxiliary hardware.
At first glance there’s so much going on under there, you’d be forgiven for thinking the EQB has an actual engine!
The cabin is also enormous as well as configurable. The EQB has massive rear doors (as it’s designed to be a seven-seater) to make it easy to get in and out of, and once you’re settled in, the amount of space for me (at 182cm) behind my own driving position is very impressive, with ample leg, arm, and headroom.
Rear passengers score the same nice synthetic leather seat and door trim as the front passengers, a bottle holder in each door, as well as two in a flip-out caddy on the drop-down armrest, two nets on the backs of the front seats, dual adjustable air vents, and power outlets on the back of the console. There is also a separate section of the split sunroof to benefit those in the back seat.
Up front the cabin is equally flexible, although it immediately seems odd that the front seats are manually adjustable. Almost unforgivable in a $100,000 car.
At least the trim is comfortable, and again, the space is configurable for people of all shapes and sizes.
Storage options include large bins in each door, a split-opening armrest console with USB-C outlets inside, a slide-open area underneath the climate unit, which houses a wireless phone charger and additional power outlets, as well as the usual glove box arrangement.
Soft trims continue into the doors, although one small annoyance is the excess of chrome trim which has the unfortunate habit of reflecting harsh Australian sun into your eyes if it hits at the wrong angle.
The software is nice and quick, but can be cumbersome and over-complicated to operate at times, particularly when using the centre touchpad, or adjusting the dash with the small touch elements on the wheel.
It is also notable the Apple CarPlay as-tested only took up a centre portion of the screen, and is not set-up for widescreen mode to take full advantage of the hardware.
Minor complaints aside, though, the EQB follows its combustion GLB twin in having by far one of the most flexible and configurable cabins in its class.
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 EQB range kicks off from $87,800, before on-road costs, for the base 250, but the car we’re looking at for this review is the top-spec 350 4Matic, which wears a price-tag of $106,700.
There’s no doubt it’s a hefty price, even for an EV, and especially for a sort-of ‘small’ SUV. There’s more to consider, too. As I mentioned in the intro, the all-wheel drive system precludes the seven-seat layout in this top-spec car, and it has less range than the front-wheel drive model, too, dropping from 371km to 360km.
On the upswing, the dual-motor powertrain is far preferable to the so-so front-wheel drive option, and the 350 also gains an AMG-spiced bodykit and flat-bottomed steering wheel, as well as a panoramic sunroof.
Outside of the extra flair, the EQB 350 is almost as well equipped as you could hope, with the flashy dual-10.25-inch 'MBUX' screen set-up, Nappa leather steering wheel and interior appointments with Mercedes’ signature 'Artico' synthetic seat trim, LED headlights, ambient interior lighting with fully customisable RGB controls, dual-zone climate, a wireless phone charger, 20-inch alloy wheels, as well as keyless entry and push-start ignition.
Given the EQB’s dimensions it would seem its most direct rival is the Tesla Model Y, although it may not be a favourable comparison.
At over $100,000 the EQB 350 is still more expensive than the top-spec Model Y Performance, which is even more powerful than our Merc here.
Other more indirect rivals include the Volvo XC40 Recharge (from $74,490 in twin-motor form), or less performance-oriented Lexus UX300e ($80,691 for the top-spec Sports Luxury), although neither are as large as the EQB, and the Lexus has about half the performance.
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.
While the EQB 350 loses its valuable third-row seats, it gains a much more impressive drivetrain than the lesser EQB 250 variant.
While that car has a so-so front-motor set-up producing 140kW/385Nm, the top-spec 350 sports a much more capable 215kW/520Nm dual-motor system.
This allows a 0-100km/h sprint time of 6.2 seconds, and while it’s not as fast as the entry-level Tesla Model 3, it’s still impressive for a 2153kg SUV.
The all-wheel drive capability also adds a level of confidence which can’t be matched by a front-drive, more on this in the driving section of this review.
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!
Regardless of which version of the EQB is chosen, the SUV has a 66.5kWh lithium-ion battery pack, and in the case of our all-wheel drive 350, this grants it a 360km WLTP-rated driving range between charges.
My car was reporting around 350km of range at or near a full charge, while my week of testing produced a dash-reported consumption figure of just 18.2kWh/100km.
This is surprising for two reasons. Firstly, I subjected the EQB 350 to a significant amount of freeway testing during my time with it, which usually produces worse consumption numbers for EVs, but it actually bested its official 21.0kWh/100km official figure by a decent margin.
Secondly, I’m puzzled to find this car outperformed the smaller and lighter EQA 250 I had on test in 2021 in terms of overall consumption, and by a significant margin. Very odd.
When it comes to charging up, the EQB can be charged at a rate of 100kW on a fast DC charger, for a 10-80 per cent charge time in a claimed 30 minutes.
On the slower but cheaper-to-install AC standard, the EQB has an 11kW inverter, allowing a convenient ‘slow’ charge time of 4.1 hours. Expect between 25 and 30 hours on a standard wall socket.
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.
This is where the 350 version of the EQB shines. This car is a beast to drive with plenty of power available at your right foot, and incredible amounts of traction to match from its torque-vectored all-wheel drive system.
This lets it be rapid, but not scary, and despite its square and upright body, might surprise you when it comes to carving a few corners.
Like many EVs, the EQB’s weight feels low and centred, but it appears the suspension has been adjusted to remove any bouncy quality, which might come with the additional weight added over the combustion variants, with nearly 500kg of lithium batteries under the floor.
In fact, the ride is also one of the things which impressed me most about the EQB. It even has huge 20-inch AMG wheels, yet it dealt with bumps of all shapes and sizes in an impressive manner, keeping the body under control, and communicating remarkably little in terms of vibration or unpleasantness into the cabin.
The steering offes a nice balance of feel and electrical assistance, a trait which combines with the EQB’s convenient size to make for an easy SUV to park and manoeuvre.
When it comes to the EQB’s traits as an electric car, there are several modes available to alter the experience.
Using the paddle shifters, there are several regenerative braking settings to choose from. While none of them are a ‘single pedal’ mode, the D- mode is pretty strong, and clearly contributed to the EQB’s surprisingly good energy consumption in my time with the car.
Activating D+ mode, which can be combined with a sporty driving setting, tones down the regenerative setting almost completely and feels as though it unleashes more potential from the potent electric motors.
While the sportier settings made the 2WD EQA I tested last year feel a little twitchy and prone to wheelspin, the all-wheel drive system keeps this well under control in the larger EQB for impressive acceleration characteristics.
The breadth of this SUV’s ability is perhaps its most impressive attribute. It can feel comfortable and tame around town, with alarming speed and tenacity when attacking the open road should you so desire.
Sure, it’s not as whiplash-inducing as some of its rivals, particularly the Volvo XC40 Recharge or Tesla Model Y, but for a luxury SUV like this it’s more than what you could ask for.
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 EQB scores a thorough suite of active safety equipment including freeway-speed auto emergency braking (7.0-200km/h), lane keep assist with lane departure warning, blind-spot monitoring with rear cross-traffic alert, as well as one of the best adaptive cruise systems on the market.
In the event of an impact, the EQB scores dual front, side, and head curtain airbags (the side and curtain bags cover both rows) as well as a driver’s knee airbag. There are the usual dual outboard ISOFIX child seat mounting points on the rear row, as well as three top-tether points.
The EQB scored a maximum five-star ANCAP safety rating to the current 2022 standards, but this rating only covers the base 250 variant. It scored highly across all criteria.
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.
Mercedes offers a five year and unlimited kilometre warranty, with five years of roadside assist. The high-voltage battery components are also covered by a separate and industry-standard eight-year and 160,000km warranty.
Service intervals are once every 12 months or 25,000km and the service plan costs an average of $440 a year for the life of the warranty which is expensive for an EV, especially considering Polestar offers free servicing for the first five years, and Volvo’s electric offerings are around half the cost over the same period.