I remember sitting in the original Lexus RX 400h back in 2005, marveling at how seamlessly its hybrid system transitioned between electric and petrol power. At the time, this technological showpiece represented the pinnacle of Lexus’s forward-thinking approach – a luxury SUV that delivered V8-like performance with six-cylinder fuel economy. Fast forward nearly two decades, and the brand that built its reputation on perfecting hybrids is now undertaking a more dramatic transition: going fully electric.
During a recent media roundtable in Melbourne, I had the opportunity to speak with several Lexus executives about the company’s accelerating EV ambitions. What emerged was a picture of a brand in transformation – one that’s leveraging its hybrid expertise while simultaneously pushing into uncharted territory with pure electric vehicles designed to maintain Lexus’s distinctive character in a rapidly electrifying luxury market.
The Current State of Play
Lexus’s electric journey thus far has been cautious by industry standards. While competitors like Audi, BMW, and Mercedes-Benz have launched comprehensive electric sub-brands with multiple dedicated EV models, Lexus currently offers just two electric vehicles globally: the UX 300e (essentially an electric version of the existing compact crossover) and the purpose-built RZ mid-size SUV.
In Australia, only the RZ has made it to our shores, with the UX 300e skipping our market entirely. The RZ 450e arrived in early 2024 with a 71.4kWh battery and a dual-motor setup producing 230kW, offering a WLTP range of 440km. While impressive in many regards, its relatively modest range and high starting price of $123,000 have positioned it as more of a niche offering than a volume seller in the luxury EV space.
“The RZ represents our first step in dedicated electric vehicles,” explained David Nordstrom, Lexus International’s Vice President of Electrified Vehicle Planning. “It embodies many Lexus hallmarks – exceptional build quality, refined ride, and thoughtful details – while introducing new capabilities unique to electric platforms. But it’s just the beginning of what we have planned.”
That “beginning” is about to expand significantly, with Lexus confirming multiple new electric models in development, aimed at different segments and price points. These new entries will form a crucial part of the brand’s global electrification strategy, which targets 100% battery-electric vehicle (BEV) sales in Europe, North America, and China by 2030, and 100% globally by 2035.
Learning from the Pioneers
One advantage Lexus has in its electric journey is the ability to learn from early movers in the premium EV space. I asked Sean Hanley, Lexus Australia’s Chief Executive, how the brand is approaching this transition compared to competitors who jumped in earlier.
“We’ve had the opportunity to observe what works and what doesn’t in the luxury EV market,” Hanley noted. “We’ve seen that simply offering impressive range figures or acceleration times isn’t enough to create a compelling luxury electric vehicle. Customers in this space expect a cohesive experience that delivers on the brand promise – something distinctively Lexus in character, regardless of the powertrain.”
This philosophy explains some of the design and engineering choices in the RZ, which prioritizes the traditional Lexus values of refinement and quality over headline-grabbing performance stats. While its 5.6-second 0-100km/h time is certainly quick, it doesn’t match the blistering acceleration of some competitors. Instead, Lexus focused on delivering what it calls “Lexus Driving Signature” – a consistent, refined driving experience that feels familiar to loyal customers while showcasing the unique benefits of electric propulsion.
“We don’t believe in electric vehicles that feel alien to our existing customers,” added Takashi Watanabe, Chief Engineer for Lexus Electrified, who joined the conversation virtually from Japan. “The goal is to create a natural evolution that enhances what people already love about Lexus, while addressing the specific advantages and challenges of electric powertrains.”
This approach might seem conservative in an industry where disruption is celebrated, but it reflects Lexus’s understanding of its core customer base – buyers who value refinement, reliability, and a certain understated luxury over technological showboating or radical departures from established norms.
The Next Wave: What’s Coming
While the executives were understandably guarded about specific future products, they did share some insights into what we can expect from the next wave of Lexus EVs. Several models are in various stages of development, targeted at different segments of the luxury market.
Perhaps most anticipated is the production version of the Electrified Sport concept – a low-slung electric sports car that recalls the spirit of the iconic LFA supercar. First shown in December 2021, this sleek 2+2 coupe promises to deliver supercar performance with a targeted 0-100km/h time of around 2.5 seconds. More importantly for enthusiasts, Lexus engineers are working to give it a distinct driving character that captures the emotional appeal of high-performance internal combustion engines.
“Creating an emotional connection in an electric sports car presents unique challenges,” Watanabe explained. “We’re exploring everything from sound design to steering feedback to throttle mapping to ensure this vehicle delivers the visceral satisfaction that driving enthusiasts crave.”
The production version is expected to arrive in 2026, potentially featuring solid-state battery technology – an area where parent company Toyota has made significant investments. If successful, this would give the electric sports car substantially better range and charging capabilities than current lithium-ion technology allows.
At the other end of the spectrum, Lexus is developing more accessible electric models to broaden its EV appeal. The Electrified SUV concept previews a larger, three-row electric SUV that would sit above the RZ in the lineup, likely competing with vehicles like the BMW iX and Mercedes EQS SUV. This model could arrive as soon as late 2025 or early 2026.
In the compact space, a production version of the Lexus LF-SA concept could emerge as a premium urban EV, competing with vehicles like the Volvo EX30 and higher-end versions of the Mercedes EQA. This would provide a more affordable entry point to Lexus electric ownership.
“We recognize the need for a comprehensive electric lineup that covers the key luxury segments,” Nordstrom noted. “Our approach is to develop these vehicles in parallel rather than sequentially, allowing us to enter the market with a more complete offering in a relatively short time frame.”
Technology and Platform Strategy
Underpinning this electric expansion is a flexible approach to platforms. While many competitors have committed to dedicated EV architectures, Lexus is pursuing a mixed strategy that leverages both bespoke electric platforms and adapted versions of existing architectures.
The RZ utilizes the e-TNGA platform shared with the Toyota bZ4X and Subaru Solterra, albeit with Lexus-specific tuning and features. Future models will use a mix of this platform and more advanced dedicated EV architectures currently under development.
“We’re taking a pragmatic approach to platforms,” explained Watanabe. “Dedicated EV platforms offer clear advantages in packaging, weight distribution, and overall design freedom. However, there are cases where adapting an existing architecture can deliver the right combination of performance, timing, and cost effectiveness. We’re open to both approaches depending on the specific vehicle requirements.”
This flexibility extends to battery technology. While Lexus is investing heavily in next-generation batteries, including solid-state technology, it’s also working to extract maximum performance from current lithium-ion chemistry.
One area where Lexus believes it can differentiate itself is in battery management and overall powertrain efficiency – leveraging the expertise developed through years of hybrid development. The company claims its approach can extract more range from a given battery capacity than many competitors, potentially allowing for smaller, lighter battery packs that deliver comparable real-world range.
“Our experience with electrified powertrains gives us unique insights into power management, thermal efficiency, and the overall integration of electric systems,” noted Watanabe. “These might seem like technical details, but they translate to tangible benefits in terms of range, reliability, and long-term battery health.”
The Australian Context
For Australian luxury car buyers, the acceleration of Lexus’s EV plans represents both an opportunity and a period of transition. The current RZ 450e, while impressive in many respects, faces challenges in our market due to its pricing and relatively modest range compared to competitors. The next wave of models could address these limitations while expanding the brand’s electric presence across different segments.
Sean Hanley acknowledged the specific challenges of the Australian market but remained optimistic about the growth potential for Lexus EVs.
“The Australian luxury market has its own unique characteristics,” Hanley observed. “Our vast distances mean range is particularly important, while our relatively small population means we need to be strategic about which global models we bring here. That said, we’re committed to offering Australian customers a comprehensive Lexus electric lineup that meets their needs and expectations.”
Hanley indicated that Lexus Australia aims to have at least three distinct electric models on sale by the end of 2026, with more to follow as global development accelerates. This would still leave Lexus behind some European competitors in terms of EV model count, but would represent a significant expansion from the single offering available today.
Pricing remains a challenge, with Hanley acknowledging that Lexus EVs currently command a premium over their hybrid counterparts. “We’re working to narrow that gap over time,” he noted. “As volumes increase and technology matures, we expect the price differential between hybrid and electric models to decrease, making the electric option more accessible to a wider range of luxury buyers.”
During the rooftop lunch following our discussion, I had the chance to speak more candidly with several Lexus product planners about the Australian EV landscape. While careful not to reveal specific product plans, they expressed confidence that upcoming models would address the key concerns of range anxiety and charging infrastructure that continue to limit EV adoption in Australia.
“The next generation of Lexus EVs will deliver substantially more range and faster charging capabilities,” one product planner told me over a glass of Yarra Valley Pinot Noir. “We’re targeting 600+ kilometer ranges for our mainstream models, with charging speeds that would allow an 80% charge in under 20 minutes on suitable infrastructure.”
The Broader Luxury EV Market
Lexus’s accelerated EV push comes at a time when the luxury electric vehicle market is becoming increasingly crowded. Beyond the established players like Tesla, Audi, BMW, and Mercedes-Benz, newcomers including Lucid, Rivian, and various Chinese luxury brands are entering the space with impressive offerings.
This competitive landscape presents both challenges and opportunities for Lexus. On one hand, the brand lacks the early-mover advantage of companies like Tesla or the massive development resources of the German luxury giants. On the other hand, it can leverage its reputation for quality, reliability, and customer service – areas where some EV startups have struggled.
“We see our traditional brand strengths as even more relevant in the electric era,” Nordstrom emphasized. “When you’re asking customers to embrace new technology, the reassurance of Lexus reliability and service becomes even more valuable. That’s a core part of our electric value proposition.”
This perspective aligns with what I’ve observed in conversations with luxury car buyers considering the switch to electric. While early adopters may prioritize cutting-edge technology and performance specifications, mainstream luxury buyers often place greater emphasis on the overall ownership experience – an area where Lexus has consistently excelled in customer satisfaction surveys.
My Take: Positioned for Long-Term Success
Having followed Lexus since its inception and driven most of its models over the years, I’ve observed that the brand often takes a measured approach to new technologies, preferring to perfect implementations rather than be first to market. This strategy has served them well in many instances – their hybrid systems, for example, have remained benchmark examples of smoothness and reliability while some competitors rushed less refined systems to market.
With electric vehicles, this cautious approach has meant a slower start than some rivals, but potentially a stronger long-term position. By observing early challenges in the EV market – from manufacturing issues to charging infrastructure limitations – Lexus has been able to develop more mature solutions that address real-world customer concerns rather than merely chasing headline specifications.
The brand’s accelerating EV rollout suggests confidence that the technology and market have matured to the point where Lexus can deliver electric vehicles that meet its exacting standards. The challenge will be balancing this traditional perfectionism with the need to move quickly in a rapidly evolving market.
After spending the day with the Lexus team, I left with the impression of a brand that’s approaching electrification with characteristic thoroughness. There’s a clear understanding that EVs represent not just a powertrain change but a fundamental shift in how luxury vehicles are designed, engineered, and experienced.
“We’re not just creating electric versions of existing Lexus models,” Watanabe emphasized as our discussions concluded. “We’re reimagining what Lexus can be in an electric future while preserving the core values that have defined the brand for over three decades.”
For luxury buyers, this evolution promises interesting times ahead. The distinctive Lexus approach to luxury – more restrained than some European brands, with an emphasis on quality and long-term satisfaction over flash and fashion – may prove particularly well-suited to the electric era, where substance ultimately matters more than sizzle.
Whether the next wave of Lexus EVs can successfully challenge the established electric luxury players remains to be seen. But the brand’s accelerating ambitions and thoughtful approach suggest they shouldn’t be underestimated. After all, Lexus has upended luxury market expectations before – first as a Japanese upstart challenging German dominance, then as a hybrid pioneer when such technology was considered unsuitable for premium vehicles.
As I walked away from our rooftop venue overlooking Melbourne’s skyline, I couldn’t help but feel that Lexus’s electric revolution might just be getting started at exactly the right time – as the market moves from early adoption to mainstream acceptance, when Lexus’s traditional strengths could prove more valuable than ever.
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