2025 Lexus RZ review: Quick drive

7NEWS

08-07-2025

For a company with such a long history of electrified cars, it took Lexus a long time to enter the fully electric vehicle (EV) game with the UX 300e in 2021. But with more and more all-electric models being released by its rivals, Lexus clearly saw the lay of the land – and so it followed up the zero-emissions small SUV with the larger RZ mid-size electric SUV two years later.
A solid effort which employed the same underpinnings as the Toyota bZ4X and Subaru Solterra, the RZ took aim at premium electric SUVs led by the top-selling Tesla Model Y, and while initial critical impressions were favourable, there were a few issues – like not enough power, not enough range, charging speeds that were too slow and pricing that was too high.
Well, in a series of carefully thought-out revisions, Lexus has pretty much identified and addressed each and every one of these foibles (wit the exception of pricing, which is yet to be reveled), while also taking the time to introduce two flashy new bits of tech to the RZ canon.
These include a steer-by-wire (SBW) system complete with controversial steering yoke, and something called the Interactive Manual Drive, a system that's similar to that seen in the Hyundai Ioniq 5 N and facelifted Kia EV6 GT and aims to simulate driving an internal-combustion car, even when you're in an EV.
We headed to the revised RZ's European press launch in southern Portugal to see what the wider, improved model range is like to drive, including coming to grips with that unusual yoke-operated steer-by-wire system.
How much does the Lexus RZ cost?
We don't have Australian prices for the updated Lexus RZ range yet, although we are expecting them to be inflated from the already-expensive existing lineup.
ABOVE: Lexus RZ 500e
We only get the dual-motor, all-wheel-drive RZ 450e variant here, which currently costs $121,059 before on-roads in Luxury trim, and $133,059 plus on-roads when specified in Sports Luxury form.
As the 450e will be replaced by the 500e for 2025 – and the 550e will be an all-new flagship variant – we'd not be surprised to see the RZ's starting price creep up as a result.
To see how the Lexus RZ lines up against the competition, check out our comparison tool
What is the Lexus RZ like on the inside?
As it ever was, with one very notable exception.
ABOVE: Lexus RZ 500e
The RZ features a beautifully put-together cabin with tight tolerances on all the trim gaps you can see, while material finishing is of a generally excellent standard. Sitting up front, even entry-level variants feel grand (barring a few more value-oriented interior panels), while fancier door cards and Ultrasuede synthetic microfibre trim ramps up the luxury factor further in top-spec RZs.
Space is good throughout the cabin, with both headroom and legroom in generous supply in the second row; particularly impressive for the former, given there's a dual panoramic sunroof on top on this Lexus SUV. Boot capacity stands at a generous 522 litres with all seats in use, rising to 1451L with the 60/40-split rear seats folded down.
And ever since Lexus did away with those daft mousepad-like controllers to oversee its in-car infotainment systems, the interface in any vehicle from this company has become far less infuriating than it once was. The main 14-inch touchscreen dominating the dash works well and looks graphically crisp, while much the same can be said about the sharp head-up display for the RZ's driver.
The digital instrument cluster is less eye-catching, though it doesn't ruin the Lexus experience.
ABOVE: Lexus RZ 550e
That leaves the steering yoke. This is only available with the steer-by-wire technology, which is likely to be standard in the RZ 550e but probably an optional extra for the 500e. It's a 360mm-wide, 197mm-high oblong item, similar to what you'd see in a Formula 1 car or an airplane, and it makes for a strange driving experience.
This is because there's nowhere to realistically place your hands except at the quarter-to-three position, which'll mean on long journeys you won't be able to adjust their position that much for comfort.
It also necessitates splitting off various lighting and windscreen-wiper functions from the remarkably stubby little stalks on the steering 'wheel'. This means they're not column-mounted, but move with the yoke itself, although as it only rotates 200 degrees in either direction off the dead centre, you're very rarely crossing your arms and therefore moving your hands, so you at least 'know' where these stalks are all the time. This removes some of the intuitiveness of using traditional stalk controls in the first place, however.
And there are also very slim, too-high-mounted paddles for the simulated gearshift function, so all in all the yoke is not a very successful reinvention of the wheel, despite it arguably being the star turn of the updated RZ.
To see how the Lexus RZ lines up against the competition, check out our comparison tool
What's under the bonnet?
Lexus does offer a long-range (568km on 18-inch wheels) single-motor, front-drive 350e variant in other markets, but it's likely we'll only get the dual-motor, all-wheel drive 500e and 550e here – the first of these to replace the old 450e, and the latter representing an all-new, higher-performance derivative.
The power output has grown significantly, though. Whereas the RZ 450e had 230kW dual electric propulsion units, the 500e takes that up to 280kW, allied to a chunky 538Nm of torque, while the 550e goes even further with a peak of 300kW but the same torque.
The claimed 0-100km/h times of these two-tonne-plus electric SUVs come in at 4.6 and 4.4 seconds respectively, which seems needless given Lexus isn't exactly a sporty brand – but, thankfully, the power delivery is linear and smooth, so they feel about spot on for performance. The slight fly in the ointment here is that the 550e feels appreciably no sharper nor swifter than the 500e.
All Lexus RZ models are now fitted with a 77kWh battery pack, up from 71.4kWh previously. That improves the range on cars shod in 18-inch wheels, to 500km for the RZ 500e. Fit 20-inch alloys, however (and they're standard on the 550e), and the range drops to 456km for the 500e, only just ahead of the 450km of the 550e.
However, there's a change to the makeup of the battery cells and a new pre-conditioning system, which Lexus says means the RZ no longer needs 'perfect' ambient conditions to achieve its fastest 30-minute 10-80 per cent DC charge; it should be able to do the same thing even if the mercury drops to -10 degrees C, although quite where and when that'll happen in this country is another matter.
The peak AC charging speed has also been doubled to 22kW, which'll see a 10-100 per cent charge take just 3.5 hours. It'll be more like 10 hours via the usual 7.4kW domestic wallbox, though.
To see how the Lexus RZ lines up against the competition, check out our comparison tool
How does the Lexus RZ drive?
Revisions to the springs and dampers, the steering system – in cars equipped with a traditional mechanical link between the steering wheel and the front axle, that is – and also reinforcement of the body structure all aim to make the revised Lexus RZ better to drive. The good news is these updates have worked.
ABOVE: Lexus RZ 500e
For a big, heavy and luxurious SUV with no pretensions to dynamism whatsoever, the RZ 500e is a pleasing machine in the corners. It's more agile than it has a right to be, with accurate steering, lots of grip and improved traction – Lexus has also worked on the Direct4 all-wheel drive system of the RZ to make for more cultured power delivery.
Of course, the real strength of the RZ is its supreme refinement and, here, it delivers in spades. The ride quality is excellent, save for a few odd occasions on the 20-inch wheels when the suspension didn't deal with the most hard-edged impacts that well, and there's an incredibly high level of noise suppression going on.
Even at highway speeds, the RZ 500e is hushed and thoroughly dignified.
The problems, if they are such, come when the Lexus tries to get clever with the technology. Easily avoided by not opting for the RZ 550e, of course, but both the SBW and the Interactive Manual Drive fail to convince.
The former's faults, however, can be squarely laid at the door of that squared-off steering yoke – the actual system behind it is geared to work organically at speed, so that the main drawback is how otherworldly that yoke always feels in your hands.
ABOVE: Lexus RZ 550e
Yet the way the Lexus tries to imitate an ICE car is what grinds our gears the most. It's a worthy attempt at bringing added driver interactivity to a motoring experience that would otherwise be a case of simply 'point and shoot', but it doesn't work well enough for us to enthuse about it.
The noise the RZ 550e makes when it is 'revving' is utterly weird, a kind of mix of a gravelly industrial roar and the synthesised whooshing of a jet engine.
That wouldn't be so bad if you didn't rip through the fake gears so blinking fast, nor if the paddles on the yoke weren't such thin strips of hard-to-locate plastic.
Neither really gets you into the mood for driving the RZ with Interactive Manual Drive engaged for very long, which means that both it and the SBW are in danger of being nothing more than gimmicks. You may sample them once or twice, then wish you'd just plumped for the more conventional 500e with mechanical steering instead.
To see how the Lexus RZ lines up against the competition, check out our comparison tool
What do you get?
While we don't have Australian specs yet, we'd expect the Lexus RZ to come with a wealth of useful standard equipment, which is something it wasn't lacking before this update.
2025 Lexus RZ 500e equipment highlights (in Europe):
14-inch touchscreen infotainment
Wireless Apple CarPlay, Android Auto
Digital instrument cluster and head-up display
18-inch alloy wheels, optional 20s
Auto-levelling LED headlights
LED daytime running lights
Privacy glass
Heated side mirrors
10-speaker Panasonic sound system
Wireless phone charger
8-way power front seats
2-way driver lumbar support
Heated front seats
Opacifying panoramic sunroof
To see how the Lexus RZ lines up against the competition, check out our comparison tool
Is the Lexus RZ safe?
The Lexus RZ picked up a full five-star ANCAP rating when it was introduced in 2023, with solid scores across the four main test disciplines. The level of safety equipment, both passive and active, hasn't changed since then, so it ought to remain a very safe car.
To see how the Lexus RZ lines up against the competition, check out our comparison tool
How much does the Lexus RZ cost to run?
As an EV, the Lexus will be a lot easier on your wallet to run than a comparably sized SUV with a similarly powerful petrol engine under its bonnet, while the company's impressive level of aftermarket provisions also adds more peace of mind to the prospect of RZ ownership.
Not only is there the five-year, unlimited-distance warranty on the car, but as an EV the high-voltage parts are covered for eight years and 160,000km.
For the current RZ, capped-price servicing costs just $395 per maintenance session, with five services costing a total of $1975.
To see how the Lexus RZ lines up against the competition, check out our comparison tool
CarExpert's Take on the Lexus RZ
The pricing and specifications of the revised Lexus RZ family are going to be key to its ultimate success here, but given the current model's relatively high pricing and market positioning it won't come cheap, especially in new top-shelf 550e form, and it's a shame we're unlikely to see the cheaper, longer-range, single-motor variant on these shores.
That said, the improvements made to the battery tech, the motors and the rolling refinement ensure this updated Japanese electric SUV beings a lot of promise.
If you can forgive us the pun, we'd steer clear of the SBW setup with its odd yoke, and we also don't see the merit in the RZ 550e with its less-than-stellar soundtrack and underwhelming Interactive Manual Drive.
But stick with a nicely specified RZ 500e with a round steering wheel in its cabin, and the longer real-world range plus smoother driving manners mean there's a very good luxury SUV to be found within the upgraded RZ lineup.
Interested in buying a Lexus RZ? Let CarExpert find you the best deal here
Pros
Superb rolling refinement
Ride comfort
Improved driving range
Cons