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.
Even though it’s expected to be superseded by a sixth-generation model next year, we're reviewing the fifth-gen Toyota RAV4 Hybrid Cruiser 2WD model to see if its hybrid powertrain and features still secures its position as top-selling medium SUV for families.
Aussies love mid-size SUVs in part because they're a tad more practical than their larger cousins, especially in the city.
You also have a better chance of fitting one inside your garage (unless you use your garage for storage, like me).
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.
The Toyota RAV4 Cruiser Hybrid 2WD model reaffirms why the RAV4 is so popular in Australia. It offers families space, convenience and features in a well-priced and handsome package. The cabin noise might be an ick for some but for everything else this model offers it could be overlooked.
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.
In anticipation of the next-gen model, there hasn't been any design changes for the RAV4 - it remains a good-looking family SUV despite being a little heavy-handed with its angles.
Some external design highlights include garage friendly dimensions and a host of black accents across the body, including 18-inch alloy wheels that help to create an edgy kerb-side appeal.
Head inside and the RAV4 Cruiser offers a premium cabin-feel with its leather upholstery and large tech screens that headline the dashboard.
As always, there is a sense that design is based on functionality rather than style, which is typical of Toyota, but the simplicity makes the cabin relaxing to be in.
You’re not overwhelmed by touchpads or gadgets as can be the case in other new cars and there is a certain charm about that.
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 RAV4 continues to impress with its practicality.
Access and comfort for both rows is excellent. The heat and cool functions for the front seats are perfect for all seasons and the two-position memory function on the driver’s side is handy if you often share driving duties with your partner.
The rear row seating is well-padded and middle seaters will love the legroom the lower transmission tunnel offers. Head- and legroom is good in both rows, even for taller adults.
Amenities and storage are also great throughout the car.
Front rowers enjoy a decently sized middle console which I can squeeze my small handbag into, a glove box, two cupholders, two drink bottle holders, a phone tray and two shelves in the dashboard. You also get a sunglasses holder!
In the rear you get a single map pocket, two cupholders and two drink bottle holders, which is enough for my little family of three.
In terms of technology, you get a bunch and the usability is great.
The 10.5-inch touchscreen multimedia system looks really nice and is now the same system that Lexus uses, which is a big plus as it’s much easier to use than the previous Toyota one. The next-gen model should see this upgraded to a 12.3-inch system, which is more in line with its rivals.
You also get built-in satellite navigation, wireless Apple CarPlay and wired Android Auto. CarPlay maintains a strong connection.
There's a multitude of charging options throughout, including a USB-A port, four USB-C ports, a 12-volt socket and a wireless charging pad.
Rounding out the cabin is a boot that offers plenty of space with its 580L capacity and you get a temporary spare tyre, as well as, a retractable cargo cover.
However, the quality of the cargo cover isn't the best and it would be easier to use if it had a handle to grip onto.
The Cruiser model comes with a powered tailgate, which is always handy but the 'warning' alert as it opens or descends is very loud. Truck-reversing-beeping loud. Everyone will know when you open the boot!
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 model line-up for the RAV4 consists of five variants with each available in front- or all-wheel drive.
The model on test for this review is the Hybrid Cruiser 2WD, which sits second-from-the-top in the line-up and is priced from $51,410 MSRP.
This price tag nudges it to the top of its rivals, the GWM Haval H6 Ultra Hybrid ($45,990 MSRP) and Nissan X-Trail e-Power ST-L ($50,490 MSRP) but the standard equipment for the Cruiser highlights its overall good value.
Premium features include leather-appointed upholstery, electric front seats with heat and ventilation functions, two-position memory function for the driver's seat, a sunroof and carpet mats.
Technology has had a good look in recently with the 10.5-inch touchscreen multimedia system now powered by the Lexus system (much easier to use) and a customisable 12.3-inch digital instrument cluster.
Other tech includes built-in satellite navigation, a nine-speaker JBL sound system, USB-A port, four USB-C ports, a 12-volt socket, a wireless charging pad, digital radio, digital rear view mirror, and a 'Toyota Connect' app with over-the-air updates.
Practical items include keyless entry and start, rain-sensing wipers, dusk-sensing LED headlights, dual-zone climate control, a powered tailgate and directional air-vents in the rear.
For the grade level and compared to its rivals, the Cruiser more than holds its own.
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.
All RAV4 models have a continuously variable automatic transmission and the same hybrid combination of a 2.5L four-cylinder petrol engine and electric motor which combine to produce up to 160kW of power and 221Nm of torque for front-wheel-drive models.
The combo delivers decent power for an SUV of this size.
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!
The Toyota hybrid powertrain produces the lowest official combined fuel cycle figure compared to its rivals at just 4.7L/100km and the best theoretical driving range of up to 1170km courtesy of its 55L fuel tank.
After covering a mix of open-road and urban driving this week, the on-test figure is 5.5L/100km, which proves Toyota does hybrids well.
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 RAV4 Hybrid Cruiser 2WD is stupidly easy to drive which is one of its best qualities.
The driver is front and centre for design, so you don’t have to take your eyes off the road to twiddle with climate controls or changing your music. That makes the driving feel… well, cruisy.
Power delivery is mostly smooth and offers decent punch when you need to put your foot down. However, it can be laggy off the mark from a cold-start, so take care when crossing traffic.
Suspension feels well-tuned for our Aussie roads, even the regional ones, but never feels floaty. This is well-grounded but you do get some roll in corners.
A drawback is the cabin is annoyingly loud once you hit the open-road and there is a wind-whistle near the driver that drove me nuts.
There are also a lot of squeaky/rubbing noises when you hit bumpy roads. However, it is a refined experience around town, when engine noise is all but nil. The urban environment is where it shines.
The steering is direct with a tight 11.4m turning circle, which makes the RAV4 easy to park. It also helps that the 360-degree view camera set-up is top-notch, which is not always the case for Toyota, and you get front and rear parking sensors too.
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 RAV4 has a maximum five-star ANCAP rating from testing done in 2019 and has seven-airbags but doesn’t have a front-centre airbag yet.
It has high individual scores for protection, scoring 93 per cent for adult, 89 per cent for child, 85 per cent for vulnerable road-user, and 83 per cent for its safety assist systems.
The RAV4 has AEB with car, pedestrian and cyclist functions, operational from 10-80km/h (180km/h for car) but it is usual to see the system operational from 5.0km/h.
Standard crash-avoidance safety kit includes blind-spot monitoring, an SOS call button, emergency steering assist, driver attention alert, a rear occupant alert, rear and forward collision warning, rear cross-traffic alert and lane departure alert.
There's also lane keeping aid, traffic sign recognition, an intelligent seatbelt warning, adaptive cruise control with stop/go functionality, a 360-degree view camera system as well as front and rear parking sensors.
You also get a digital rear view mirror, which is great when you have compromised vision out the back window.
There are ISOFIX child seat mounts and three top tethers in the rear row. You might be able to get three seats across but two will fit best.
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 RAV4 is offered with a five-year/unlimited km warranty, but you add two more years if you service exclusively with Toyota and on schedule.
There is a five-year capped-priced servicing program and it costs just $260 per service, which is very competitive for the class.
Servicing intervals are reasonable at every 12-months or 15,000km whichever occurs first.