New Lexus brand boss plans big EV overhaul, benchmarking Tesla

OYAMA, Japan — Japanese premium leader Lexus is rolling out some of its most fetching automotive designs, luxurious amenities and impressive technologies these days.

Just consider the rugged good looks of the GX utility vehicle, the regal splendor of the LM people mover and the futuristic steer-by-wire system for updates of the sleek RZ electric crossover.

But Lexus' newly appointed global boss says an even bigger transformation is on the way from 2026 as the brand leaps into next-generation electric vehicles. The road forward will be previewed next month when Lexus unwraps the first concept for those EVs at the Japan Mobility Show.

Takashi Watanabe, who took the helm as president of Lexus International in April, said full electric drive will open a new world of opportunities for Lexus to burnish its brand persona. Lexus will spearhead Toyota Motor Corp.'s next-generation EVs on its way to offering an electrified option for every vehicle in 2030, before going EV-only by 2035.

"In 2026, we will introduce the next-generation battery EV that re-innovates the vehicle modular structure, significantly alters our production methods and completely re-imagines the software platform," Watanabe said at a vehicle and technology showcase this month at Fuji Speedway. "We have also prioritized vehicle design to embody the essence of Lexus."

On the radar is a software operating system that Lexus said will unlock a new world of personalized premium perks and performance, as well as luxury tailored to regional preferences.

Pure electric motor drive will deliver more direct control and excitement, Watanabe said, adding Lexus is even considering an all-electric stick shift technology that will retain the thrill of throwing through the gears for tomorrow's electric motor heads.

A new generation of F-inspired all-electric performance models on tap is pumped up by rumors of an EV sports coupe positioned as a spiritual successor to the legendary LFA supercar. A teaser of the Japan Mobility Show concept shows a wedge-shaped silhouette with a long wheelbase, tucked-down nose and raked windshield.

It all feeds into how Lexus wants to distinguish itself from the premium pack through its Lexus Driving Signature, a driving experience characterized by quiet comfort and responsive steering.

"We consider the battery-electric powertrain ideal for controlling vehicle movement," said Watanabe, formerly chief engineer for Lexus Electrified, the operation charged with making the marque gasoline-free. Watanabe took the wheel after previous Lexus brand boss Koji Sato was promoted this year to succeed Akio Toyoda as CEO of parent company Toyota Motor.

As former top engineer for electrifying Lexus, Watanabe serves as the architect of the new direction. Yet the road ahead is uncertain, starting with production and sales plans.

Lexus said it will be ready to sell 1 million EVs annually in 2030, which represents a huge ramp-up. Toyota and Lexus brands combined sold just under 25,000 EVs worldwide in 2022. Through August of this year, Lexus sold only 2,068 RZ electric crossover vehicles in the U.S.

Just how and where to manufacture EVs is a plan still in the making. Watanabe said the key is commoditizing the hardware as much as possible to drive down costs to compete with the likes of Tesla and China's BYD.

"We need to make it easier to build and simplify as much as possible," Watanabe said, adding that it is "important to humbly look at and learn from" Tesla's achievements. "One of our first steps will be modifying and rethinking our production methods."

Lexus will piggyback on a slew of new production techniques being readied by Toyota. These include cars that drive themselves through assembly lines and the adoption of giga casting techniques to greatly reduce the number of components.

Another challenge is setting Lexus apart in the age of commoditized EVs.

"We need to be more unique — we need to define that," Watanabe said. "If we rely only on product alone, we probably can't get as far as we need to go. We need to offer more. After the customer has bought the product, what other kind of experiences are possible?"

Diversifying the brand lineup to appeal to regional needs is one way to accomplish that, Watanabe said.

In Europe, for example, Lexus offers the LBX compact crossover based on the same architecture as the Toyota Yaris Cross. Customers in China and Japan, meanwhile, are being targeted with the boxy LM van, a chauffeured living room on wheels for the executive set. And the redesigned GX SUV and new TX three-row family crossover are geared toward North America, where people want premium performance both on the road and off.

"For the first time on a global scale, we're bringing unique products to different regions," Watanabe said. "That's what's unique about this time in our brand history."

To highlight its commitment to fresh thinking at the brand event, Lexus showed off a recreational off-highway vehicle dubbed the ROV Concept. The four-wheeled dirt devil is based on the Yamaha YXZ1000R.

But Lexus engineers reworked its 998-cc three-cylinder internal combustion engine to become a zero-emission powerplant that burns hydrogen instead of gasoline. Professional drivers demonstrated the vehicle's rock-chewing chops in a stomach-churning romp through a new off-road test track carved into the hills above Fuji Speedway's paved international circuit.

The performance of the ROV surely impressed. But engineers said its meager range of just 12 miles on a full tank of hydrogen will keep the wild runabout in the development lab for the time being.