The popular Lexus IS sedan exited Australia in 2021, in the face of tightening restrictions on safety standards, has remained on sale in the United States, and was facelifted in 2025 to ensure sales would continue in what is now its largest market.

Lexus launched the the third-generation IS in Australia, in 2013, with a 2017 facelift following, and then a significant update in 2020. During its run in the US, buyers could opt for a hybrid IS 300h, a V6-powered IS 350 or the V8-powered IS 500 F Sport version.

However, a recent report by Car And Driver in the United States, suggests that the mid-size sedan could be revitalised with an electric powertrain. Car And Driver cites a report by Japanese outlet Best Car that claims Lexus is planning on launching an electric new generation IS sometime in 2027.

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Despite not being available in Australia for nearly five years, the IS (above) has continued to sell well for the brand in North America, a market that was always strong for the luxury sedan. The most recent update for the United States, saw the IS grow by 10mm in overall length, while other dimensions remained the same.

Inside, the model update also included a revised dashboard design with two 12.3-inch screens, one for infotainment functionality and one for the driver display. Lexus also moved away from its traditional centre console mouse-style controller delivering a much cleaner console area, but also touchscreen functionality.

Car And Driver reports that the new IS could feature single and dual-motor variants, which would mean AWD and power outputs as high as high as 370kW. Styling cues could be taken from the LF-ZC that first broke cover in 2023, at which time Lexus told the world’s motoring press that a production version of that car would be built in 2026.