Lexus ES300h 2026 review: Luxury | Mercedes-Benz C-Class rival tested

The Lexus ES has come a long way and the latest eighth-generation version is the most advanced and diverse yet. Lexus launched the electric version a few months back and now the petrol-electric hybrid has arrived.

A favourite of airport limo operators, the 2026 ES hybrid is expected to attract a similar clientele while also appealing to private buyers that aren’t ready for full electric power.

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More luxury means a higher price for the 2026 Lexus ES

One quick note on design - the new ES is a stunner. Easily the best looking Lexus sedan in years, it gets a lot of attention from curious admirers.

The ES EV is offered in Sports Luxury spec with either front- or all-wheel drive, but the hybrid is offered solely in front-wheel drive Luxury guise.

It’s $75,000, before on-road costs, which is only $2000 less than a FWD Sports Luxury EV. Given the extra spec and smooth electric powertrain, I’m not sure why you wouldn’t just pay the extra $2.0K and opt for the EV. Unless you have a serious aversion to battery electric vehicles.

The new hybrid is $9460 pricier than the previous-generation ES300h Luxury ($65,540), which is a significant jump, however it is a vastly different car with next-gen tech and an uptick in luxury and standard features.

There are few direct rivals for the big hybrid Lexus, but as an alternative you could look at a plug-in hybrid like the Audi A5 e-hybrid ($89,900) or Mercedes-Benz C350e (from $98,200) but nothing else in its class has the rear-seat space (more on that later) or standard gear. A size up is the Genesis G80 2.5T but that’s $104,128. That $75,000 starts to look pretty good against its premium rivals.

Standard gear in the ES300h Luxury includes:

• 19-inch alloy wheels
• Auto-levelling LED headlights
• Acoustic windscreen glass
• Synthetic leather upholstery (in black, white or hazel)
• Panoramic roof with power sunshade
• Auto-dimming rear-view mirror
• Heated front seats and steering wheel
• Eight-way power front seat adjustment
• 14-inch multimedia touchscreen with embedded sat-nav
• Apple CarPlay and Android Auto
• 12.3-inch digital instrument cluster
• Five USB-C ports
• 10-speaker audio

The example I’m testing comes with the $7000 Enhancement Pack, bringing the price to $82,000. That pack includes:

• Auto-dimming driver’s side exterior mirror
• Electronic rear-view mirror
• Ambient lighting
• Head-up display
• Ventilated front seats
• Power adjust lumbar on passenger seat
• Driver’s seat slide with memory function
• Panoramic view monitor
• Intelligent park assist
• 17-speaker Mark Levinson audio system
• Wireless charging
• Digital key

The large and luxurious cabin of the 2026 Lexus ES300h Luxury

Again, I won’t go into too much detail on cabin design, but there is no doubt this is a premium car. The intricate Japanese-inspired pattern of the door inserts is a highlight.

The steering wheel is another highlight. It’s sporty, not overly thick, smallish, beautiful material. One of the best I’ve seen in years.

The front seats are comfortable, as you’d expect from a Lexus ES. They’re not overly supportive but offer enough bolstering for a car like this.

Byron isn’t a fan of the ‘hidden’ controls for cruise and phone functions on the steering wheel or climate under the screen that appear illuminated when you hover near them, but I don’t mind it. You can turn them on all the time in settings.

For details on multimedia, storage and more, check out Byron’s review.

The 2026 Lexus ES300h Luxury is the perfect airport transfer car

That extra ride height makes getting in and out of the Lexus ES easy, which is a positive, especially given the more mature average age of a Lexus buyer.

Slotting into the second row behind my 183cm (six-foot) driving position, it’s clear what the Lexus ES is built for. There is so much legroom it’s almost ridiculous. This is the sort of space you’d get in a BMW 7 Series or Mercedes S-Class. It is the ideal business class airport transfer car.

Headroom is also ample and there’s plenty of space across the bench. There is a smaller transmission tunnel, but because the two outboard seats are bucketed, the middle seat is set higher up and feels like an afterthought. Use only in emergencies.

Those rear seats with high-grade synthetic leather are incredibly comfortable and easy to sink into, while still offering support. This really would be a lovely place to spend a few hours.

A wide centre fold-down armrest oddly doesn’t have cupholders, instead it includes a rubber pad for holding your phone.

The rear-row seatback is fixed so you can’t fold it down for extra storage in the incredibly long boot, which swallows 493 litres. No spare wheel is offered, just a useless tyre repair kit.

2026 Lexus ES300h Luxury hybrid power and efficiency

The new Lexus rides on Toyota Motor Corporation’s TNGA-K architecture, albeit a heavily revised version compared to the old ES.

The hybrid powertrain is a 2.5-litre Atkinson cycle four-cylinder petrol engine with a front permanent magnet synchronous motor, driving the front wheels via an electronic continuously variable transmission (CVT). The Atkinson combustion cycle effectively shortens the engine's compression stroke relative to the expansion stroke in the name of optimal fuel efficiency.

Power is rated at 144kW - up from 131kW in the old car - but Lexus doesn’t provide torque figures for its hybrids.

Fuel use is 4.5 litres per 100km on the combined cycle and CO2 emissions are 103g/km. I saw urban figures ranging roughly from the official claim to the low fives across the week.

Is the 2026 Lexus ES hybrid better to drive than the EV?

Full disclosure - I haven’t driven the electric ES, but Byron spoke highly of the EV’s on-road performance in his review. He briefly drove this hybrid and for his money, he’d pick the EV.

I spent a bit of time behind the wheel of the previous generation ES and it was perfectly fine to drive - pleasant, quiet, inoffensive but somewhat forgettable.

Lexus has upped the ante with the new ES when it comes to how it drives, but it’s not all sunshine and roses.

Firstly, it sits quite high on the road for a sedan. I was sitting as high up as the drivers of some mid-size SUVs I passed. So, if you’re considering an SUV over a sedan because of ride height, the ES has you covered.

The ES hybrid is responsive enough without being blisteringly fast in Normal mode. When you floor the accelerator, the petrol engine feels like it’s working hard. It doesn’t sound too unpleasant, but drones a little.

Sport mode gives it a bit more bark and it feels quicker.

At lower speeds the brakes have that hybrid sponginess to them but an 80km/h emergency brake test proved they’re strong when needed.

Steering lacks a bit of engagement but it’s still direct.

The ride is a little floaty, particularly on undulating roads. The hybrid lacks the adaptive dampers of the EV. It handles potholes well, and there are a lot around Melbourne right now. The Michelin 235/55 R19 tyres with high sidewalls help to soak up those bumps.

Tyre noise creeps in only on the coarsest of road surfaces, but otherwise it's a well insulated, hushed cabin experience.

The ES shines in urban settings and on freeways. I suspect it would be a dream on a long-distance road trip. But it’s no performance sedan. Sadly Lexus doesn’t have one of those after the demise of the IS. The ES undoubtedly feels like a premium car on the road, but it’s less convincing when pushed on twistier roads at higher speeds. But arguably, that’s not the point of this car.

It has a big turning circle, not surprising given the 5145mm length and near three-metre wheelbase. You will notice its size in tighter urban streets.

When it comes to safety and driver aids, the driver distraction warning is the only slightly annoying feature, but can be turned off in settings. All other functions like lane keeping only intervene when necessary. It’s a smooth and unobtrusive set-up.