Australia's electric vehicle market continues to evolve rapidly, and the refreshed Lexus RZ reflects these changes clearly.

Launched locally in 2023 as a premium counterpart to the Toyota bZ4X and Subaru Solterra, the RZ started out as a viable option in the luxury electric SUV space, achieving 480 sales in Australia through the end of 2024.

Deliveries dropped sharply to just 41 units last year as buyers turned toward attractive new Chinese models and reduced European options instead.

Lexus Australia has therefore implemented substantial changes to revive interest in this electric offering.

Globally the base RZ receives a broad package of improvements such as a larger battery pack, increased output, quicker AC charging, extra chassis reinforcement, revised suspension components, and measures to lower noise vibration and harshness levels.

Existing variants gain these enhancements while a new flagship RZ550e F Sport adds an even larger battery, higher power, steer-by-wire technology with a yoke, and Interactive Manual Drive that lets drivers use yoke paddles to select among eight simulated gears.

A more aggressive RZ600e F Sport Performance variant arrives later in 2026 as a limited edition with restricted local supply.

Prices across the lineup have also been cut by over 30 percent, which may frustrate early buyers yet benefits those seeking a luxury EV without reaching six figures.

Lexus has clearly invested heavily in the updated RZ, but with rising competition the key question remains whether these efforts suffice.

How much does the Lexus RZ cost?

Every model sees lower pricing. The updated RZ500e Luxury starts at $84,500 before on-road costs, down $36,559 from the prior RZ450e Luxury, while the RZ500e Sports Luxury is $91,000 plus on-roads after a $42,059 reduction.

Model	Price before on-road costs
2026 Lexus RZ500e Luxury	$84,500
2026 Lexus RZ500e Sports Luxury	$91,000
2026 Lexus RZ550e F Sport	$105,000

These cuts follow smaller adjustments applied to the RZ platform siblings after their own recent updates.

The new RZ550e F Sport tops the range at $105,000 before on-road costs. It is the sole variant exceeding the Luxury Car Tax threshold for efficient vehicles, although the Luxury and Sports Luxury now qualify for Fringe Benefits Tax exemptions.

Key rivals include the Audi Q6 e-tron, Porsche Macan Electric, Genesis Electrified GV70, Polestar 4, Cadillac Optiq, and the upcoming BMW iX3. Buyers focused on performance may also consider the Kia EV6 GT and Ford Mustang Mach-E GT.

Competitor pricing spans roughly $80,000 to $185,000 depending on specification.

What is the Lexus RZ like on the inside?

Although it shares its platform with Toyota and Subaru models, the RZ cabin remains distinctly Lexus in character.

The dashboards in the bZ4X and Solterra appear overly complex, while the Lexus design integrates components more smoothly, particularly the screens that blend naturally rather than protruding awkwardly.

Materials in the sporty test vehicle further distinguish the RZ from mainstream electric SUVs. Soft suede covers door cards and seat bolsters, and the synthetic leather on the steering wheel, armrest, and door cards looks and feels premium.

Overall build quality is strong, indicating the RZ is constructed for durability.

However, the F Sport seats prove narrow with firm bolstering around the ribs, and headroom is limited for drivers over six-three, an unusual constraint in luxury SUVs.

Front seats still offer strong comfort features such as heating and ventilation, eight-way power adjustment, driver memory, and lumbar support, though no massage function is included.

Legroom remains generous thanks to the yoke placement higher and farther back than a conventional wheel.

Lexus notes the yoke improves visibility of the digital cluster, which holds true except where the steering-column driver camera partially blocks the lower area.

The instrument display itself is a carryover item resembling the one from the Toyota Yaris, appearing small and low-resolution within a large housing. The head-up display provides clearer speed, safety, and cruise data instead.

The 14-inch central screen sits flush with the dash and delivers graphics suited to a 2026 luxury vehicle.

Functionality stays limited without Google services or many native apps, and the standard navigation lacks advanced features.

The upgraded Mark Levinson audio performs well, though testing was limited.

While basic, the interface is not highly intuitive, relying on a vertical shortcut bar and deep menus rather than a simple grid layout.

Most users will therefore rely on Apple CarPlay or Android Auto.

Lexus avoidance of certain tech trends proves beneficial in places, such as the physical temperature controls that avoid the screen-heavy approach seen in the BMW iX3, Audi Q6 e-tron, and Polestar 4.

Physical buttons for demisters, volume, and mirrors keep everyday functions accessible, though the drive-mode selector is tucked away, which matters more in the F Sport.

Cabin storage is average, with good phone and drink spaces plus wireless charging on the console, yet lower trays and door bins are small and no glovebox is provided.

The combination of tight seats, dark trim, limited headroom, and no sunroof makes the front cabin feel somewhat confined for a large SUV classification.

The second row offers more space. At six-one I enjoyed ample kneeroom and headroom without touching the roof.

Rear comfort benefits from a thick cushion, suede upholstery, and outboard heating, though under-thigh support remains modest as in many EVs.

Rear amenities include dual USB-C ports, air vents, map pockets, door storage, and a fold-down armrest with cupholders.

Boot space totals 522 litres with seats up and 1451 litres folded, comparable to rivals though without a frunk.

The area is wide, tall, and practical with a flat floor and wide opening extending forward.

Under-floor storage, tie-downs, bag hooks, and a 12-volt outlet are included, but boot lighting is minimal.

A tyre repair kit replaces a full spare as is common now.

Dimensions	Lexus RZ
Length	4805mm
Width	1895mm
Height	1635mm
Wheelbase	2850mm
Cargo capacity	522L (rear seats up) 1451L (rear seats folded)

What is under the bonnet?

The dual-motor all-wheel-drive RZ500e replaces the former 450e, while the 550e introduces a higher-performance version.

Specifications	Lexus RZ500e	Lexus RZ550e
Drivetrain	Dual-motor electric	Dual-motor electric
Battery	74.7kWh lithium-ion	77kWh lithium-ion
Power	280kW	300kW
Torque	537Nm	537Nm
Drive type	All-wheel drive	All-wheel drive
Weight	2095-2105kg	2155kg
0-100km/h (claimed)	4.6 seconds	4.4 seconds
Energy consumption (claimed)	18kWh/100km	18.8kWh/100km
Energy consumption (as tested)	N/A	18.4kWh/100km
Claimed range	460km	437km
Max AC charge rate	22kW	22kW
Max DC charge rate	150kW	150kW

The RZ500e delivers 50kW more than the old RZ450e via updated motors for 280kW total, with torque steady at 537Nm.

A larger 74.7kWh battery replaces the prior 71.4kWh unit, improving WLTP range 16 percent to 460km while doubling AC charging to 22kW.

The RZ550e F Sport uses a 77kWh battery and adds 20kW, though range falls slightly to 437km.

A 313kW RZ600e F Sport Performance arrives later in 2026 as a limited edition.

How does the Lexus RZ drive?

The RZ550e F Sport provides a distinctly memorable drive compared with typical electric SUVs for one clear reason.

While Tesla introduced yokes in the Model S and Model X, Lexus becomes the first brand to offer this setup in Australia.

The brand extends the idea with steer-by-wire, using electronic signals instead of a direct mechanical link to the front wheels.

In practice this creates a novel and initially surprising steering feel.

Drivers must hold the squared yoke at nine and three, as alternative grips are not possible.

At low speeds the variable ratio feels highly sensitive, making small inputs produce large direction changes that could lead to minor incidents on delivery day.

Once past that initial phase the responsive steering aids tight maneuvers and parking by reducing the need for hand-over-hand inputs.

At higher speeds sensitivity decreases for improved stability.

Extended highway use reveals a drawback, as there is no comfortable hand-rest position on the yoke, increasing fatigue on long trips.

The capable semi-autonomous system helps offset some of that effort.

The yoke-mounted paddles feel thin like popsicle sticks, and the shortened stalks for indicators and wipers lack the satisfying action of standard controls.