Lexus IS to return as a Tesla Model 3 fighter

The latest Lexus IS sedan was unceremoniously axed from the Australian market less than a year after its launch in late 2020 due to new local side impact regulations, but that doesn’t mean it won’t return.

In fact, Lexus published several new photos of what is almost certain to become the replacement for one of its longest running and most popular nameplates on Twitter this week, dubbed the Lexus Electrified Sedan Concept.

First teased by Lexus and Toyota kingpin Akio Toyoda in mid-December 2021, when he declared “Welcome to our showroom of the future!” while surrounded by four new Lexus and 13 new Toyota electric vehicles, the next-generation Lexus IS sedan appears to be gunning not only traditional rivals like the BMW 3 Series and Mercedes-Benz C-Class, but the Tesla Model 3 as well.

Speaking at this week’s launch of the new Lexus NX, recently appointed Lexus Australia chief executive John Pappas suggested a replacement for the Lexus IS would return sooner rather than later.

“I’m not confirming we’re getting another IS today,” he stated, “but IS was a really good car for us and Australian customers loved it. We will continue to look from a product planning perspective… in terms of what that [replacement] is going to look like. I can’t confirm anything but it’s very exciting for us.”

Asked whether the new Lexus IS would be a battery-powered rival for Australia’s top-selling EV, the Tesla Model 3, he responded: “Possibly. We’re very excited about the future.”

“Looking at all those products that were on the stage, they looked fantastic and the images you’re referring to that appeared on social media look great.

“The beautiful thing for Lexus now is the new Shimoyama facility, so from a speed to market point of view – from design and planning all the way to execution – it’s a lot quicker now.”

Located in a mountainous area near Nagoya in Japan, the huge Shimoyama technical centre represents a $3.6 billion investment and incorporates test tracks designed to mimic elements of the Nurburgring.

It will house around 3300 Toyota and Lexus staff once fully operational in 2023 and Pappas said it will play a pivotal part in future Lexus product development.

While Pappas wouldn’t be drawn on timeframes for an electrified Tesla Model 3 rival, he said Lexus Australia plans to double the number of electrified vehicles it sells Down Under, from just under 40 per cent at present to around 80 per cent by 2025.

To reach this target it will need to release several new electrified products – and soon.

Globally, Lexus has promised to offer electric versions of every model it sells by 2030 and then to sell only zero-emission vehicles – like Tesla – by 2035.

The ‘new’ Lexus IS premium sedan was available in Australia for less than 12 months before new federal side impact safety regulations banned its sale (along with several other high-profile models such as the Nissan GT-R) in November 2021, but continues to be sold in markets like the US where the such rules aren’t yet in place.

While Pappas says the all-new Lexus NX mid-size SUV arriving this month would help pick up the slack left by the premature retirement of the IS in Australia, he made it clear the popular Lexus nameplate is likely to make a comeback.

“We are working tirelessly with Lexus International on the future product portfolio and even though I’ve got nothing to announce today about the replacement of IS specifically, I am not concerned about our short-term aspirations of growth even without the IS.

“Australians loved the IS and we saw really good growth last year with IS, so for us the IS is still important.”

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