According to the German magazine Automobilwoche , Lexus has terminated development of the all-electric sedan that was expected to be the successor to the IS model. This model was inspired by the LF-ZC concept unveiled in 2023 and was previously planned for production before its launch was postponed to 2027.
Confirming with the media, a Lexus spokesperson said the decision was made after a comprehensive review of the company's product development projects, in light of changing market conditions and customer demand. The US – Lexus's largest market – is believed to have played a significant role in this assessment process.
This move comes as many automakers are adjusting their electrification strategies due to slower-than-expected growth in electric vehicles, while demand for SUVs and crossovers continues to far exceed that of traditional sedans.
Despite canceling the new electric sedan project, Lexus affirms it will continue to invest in core technologies such as large-scale body casting technology and solid-state batteries. These are all technologies expected to improve production efficiency, reduce vehicle weight, and enhance performance in the future.
These technologies could appear on models still in the company's development roadmap, including the next-generation ES sedan, the RZ electric crossover, and the three-row TZ electric SUV.
The lack of a replacement model also makes the future of the current Lexus IS noteworthy. This sedan uses a platform from 2014 but remains competitive through major upgrades in 2021 and 2025.
While Lexus has withdrawn from its mid-size electric sedan plans, German luxury rivals continue to expand their product portfolios. BMW is developing a new all-electric i3, and Mercedes-Benz is reportedly preparing to launch an all-electric C-Class.
Currently, the ES line is seen as playing a central role in Lexus's electrification sedan strategy, with the next generation expected to include both hybrid and all-electric versions.