Lexus LM 500h Ultra Luxury 2025 Review

The most expensive model of the three-tier LM range (and the second most expensive Lexus available in Australia, just pipped by the $220,950 LX 600 Ultra Luxury SUV), the 2025 Lexus LM 500h Ultra Luxury costs $220,272 plus on-road costs (ORCs).

The only other people-movers that approximate the LM 500h as an executive limo are the battery-electric Mercedes-Benz EQV 300 ($161,723 plus ORCs) and the LDV MIFA 9 Luxe ($129,000 plus ORCs), both of which offer more seats for fewer dollars.

So who buys a $220K, four-seater people-mover? According to Lexus Australia, the “LM 500h is an extremely niche model. Notwithstanding that, Lexus Australia sells every LM 500h it can acquire.” About 10 per cent of LM sales are the 500h and most buyers are VIP limo companies, with a smattering of private buyers.

The remainder of the Lexus LM range comprises the (somewhat) more affordable LM 350h Sports Luxury seven-seater in two-wheel-drive ($160,272 plus ORCs) and on-demand four-wheel-drive ($165,272 plus ORCs) formats.

The headline act of the Lexus LM 500h is in the back. It has only two rear seats, each having the size, appearance and functionality of the lush airline seats found only up the aircraft’s pointy end.

There are power sliding doors each side to facilitate a quick escape from incoming paparazzi, two separate rear sunroofs (with power-operated shades), side windows with fast shades, and a climate-control system with not only two zones for those in the front, but two individual climate zones for rear passengers too.

The back seats are powered, including an extendable footrest, as well as having heating, cooling and massage functions.

The front and rear chairs are separated by a lined bulkhead with a powered glass section. The glass has smart properties, meaning one can not only shut the window on the driver to discuss the latest take-over bid, but also switch from clear glass to frosted, in case the driver can lip read.

The driver can’t do that while paying attention to the road anyway, as in place of the rear vision mirror is a camera view of behind the Lexus. It’s certainly not a wide-angle rear view, either (there’s a separate wide-angle reversing camera display on the infotainment screen for that); rather one for sighting cars incoming from a fair distance away. Or getting a super close-up and crisp view of the car behind you in traffic. It’s a bit disconcerting – it makes one’s relationship with other road users feel a bit too personal.

Anyway, back to party central. Other nice touches to relieve the onerous life of back seat movers and shakers include power-latching doors, a chilled drinks compartment and fold-out tables. There’s selectable suspension damper control too, that steps past the typical sport, comfort and normal settings to also include one that prioritises rear seat comfort. Irritatingly, you’ll have to drop the privacy glass and ask your driver to punch in that setting.

You’ll get plenty of screen time in the LM 500h. No surprise that the the dashboard houses a centre infotainment screen large enough to make a graphic designer happy and the dash is also digital, but really that’s what most buyers expect when spending $50K, let alone $220K. Yes, there are enough device charging ports, even cable-free charging, and of course Apples and Androids can be mirrored.

The tech down the back is more plentiful; the huge 48-inch screen on the back of the bulkhead can be used to run the climate or seat menus, or even paired with your device to display the latest profit results. There are two small phone-size devices set into the centre divide (one for each rear passenger) to wirelessly run the climate, seat and entertainment systems.

The audio is a bit special too; it’s a 23-speaker Mark Levinson system.

The Lexus LM 500h’s parallel hybrid arrangement includes a 2.4-litre turbocharged petrol four-cylinder engine developing 202kW/460Nm, a six-speed automatic transmission and an electric motor at the front assisted by another at the rear axle.

Warranty cover is five years/unlimited kilometres, while a service is due every 12 months or 15,000km. Lexus has a capped-price service offering of $695 per service, with up to five of them over five years.

The 2025 Lexus LM 500h is such a departure from the limousine norm. While it looks much more upmarket than the Toyota Alphard people-mover on which it is based (although some might think Lexus spent too much time on the LM’s huge grille), it seems less ostentatious, less showy and definitely less crass (think stretch Hummer) than some limos. At least it isn’t the A8, Q7, 7-Series or S-Class conservatism that almost seems like a limo cliché.

The fit and crafted finish is just sensational in the exacting if a touch sterile way only the Japanese can seemingly perfect, while the technology is not only functional but also comprehensive.

The 2025 Lexus LM 500h drives well, with assertive low-end response that is backed by a continued strong push forward if grasping for highway speeds in a hurry. It’s not slow. The ride quality is all quality, if comfort is job number one, and in the LM 500h it undoubtedly is.

The council responsible for my local roads have kindly left many test potholes and sharp road joints that are enough to make you wince when riding over them in most vehicles. The Lexus just made me wonder if the council had fixed the holes (it hadn’t). If only more regular cars had a ride this supple.

But it’s in the back seat where the Lexus LM 500h really shines. It’s insanely spacious and really comfortable when you disappear into one of the two soft, supportive seats. It’s also very quiet and the ride is super-smooth.

The cargo area is also huge, enough to store multiple large suitcases for an airport run. A space-saver spare sits under the load floor covering.

There’s not much not to like about the 2025 Lexus LM 500h, if ferrying a couple of VIPs in comfort and class is important. Sure, the ride feels a bit too soft and ponderous if pushing on over lumpy B-roads (somewhat quelled by selecting the suspension’s Sport mode) and steering feel is dull.

There isn’t much space for larger occupants in the front, especially if you’re tall and need all the leg room you can’t get here (because bulkhead soaks up a fair bit of space).

Fuel consumption was higher than expected, averaging around 11.0L/100km with primarily urban shuffling. The hybrid system could also be more refined, with the petrol engine cutting in with little subtlety.

The 2025 Lexus LM 500h is such a niche product but it is an interesting alternative to regular limousine options. The tight space up front for taller people, seating limited to four, higher-than-expected fuel consumption and an unresolved luxury appearance may count against it.

Yet there is much to commend the LM 500h; it appears to be a subtle yet well-made, luxuriously appointed conveyance.

2025 Lexus LM 500h Ultra Luxury at a glance:
Price: $220,272 (plus on-road costs)
Available: Now
Powertrain: 2.4-litre four-cylinder turbo petrol-electric
Output: 202kW/460Nm (electric motors: 140kW/460Nm)
Combined output: 273kW
Transmission: Six-speed wet-clutch automatic
Fuel: 6.6L/100km (NEDC Combined)
CO2: 149g/km (NEDC Combined)
Safety rating: Not tested

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