Lexus cancels electric IS replacement

The battery-powered replacement for the 13-year-old Lexus IS has been canned, with the Japanese luxury brand cancelling work on an all-electric mid-size sedan based on the 2023 LF-ZC concept.

A Lexus spoksperson told Automobilwoche  development of the electric sedan has been cancelled due to a “company-wide review of vehicle development projects, taking into account fluctuations in market demand", with the US being a key factor.

The US remains the largest single market for the brand, and was responsible for 46.3 per cent of its global sales in 2025. Electric vehicle (EV) sales in the US have tapered off after the end of federal tax incentives in 2025 and, perhaps just as importantly, there's still no sign of buyers drifting back towards sedans from SUVs.

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According to Nikkei Asia, the IS replacement was originally set to go into production by the end of this year, before being delayed until mid-2027. Despite its cancellation, Toyota will continue to work on two key technologies that were to underpin the LF-ZC: gigacasting and solid-state batteries.

It's unclear what impact the LF-ZC's demise will have on the current IS, which first went into production in 2013. It has since gone through three facelifts, the most dramatic of which took place in 2020 and included a completely redesigned exterior, but a largely unchanged cabin.

The most recent facelift came in 2025 with a new front bumper, and a redesigned dashboard that finally eliminated the CD player and capacitive temperature controls.

Due to Australian side impact regulations the third-generation IS was withdrawn from the local market in 2021. It has also been discontinued in Europe due to financial penalties for companies that exceed the EU's CO2 emission targets.

With the 5.0-litre V8 variant axed last year, the only drivetrains available currently are a 3.5-litre V6 and a 2.5-litre four-cylinder hybrid. 

In the time since the current IS went into production, BMW and Mercedes-Benz have both launched, or are about to launch, two new generations of the 3 Series and C-Class, respectively. They have also recently debuted the all-electric i3 and C-Class EV to sit alongside their petrol- and diesel-powered siblings.

Lexus has just three sedans in its global range: the IS, ES and LS. While the flagship LS is no longer available in the US or Europe, it continues to be sold in Australia, Japan, China and the Middle East.

Most of the brand's efforts in the sedan space seem to be centred on the ES, the eighth generation of which debuted last year, and will be available with both hybrid and EV drivetrains.

MORE: Explore the Lexus IS showroom