Lexus reaffirmed its strategic status as the battery electric vehicle technology leader in the TOYOTA group with the announcement today of technical innovations it will bring to Europe’s BEV market in the coming year.

Hosting the world premiere of its new RZ luxury electric SUV in Brussels, the company revealed that this model will introduce both a steer by wire system and Interactive Manual Drive, a software-based system which replicates the experience of manual gear shifting. These innovations demonstrate how Lexus is combining advanced hardware and cutting-edge software to realise its ambitions to develop software-derived vehicles.

The RZ will be one of three new BEVs Lexus will launch in the next 12 months.

These announcements were made against the backdrop of record sales achievements and rapid growth in customer demand for Lexus’ battery electric and plug-in hybrid models.

Speaking to international media today, Pascal Ruch, Lexus Europe and Value Chain Vice President, said: “Lexus contribution to this strategy is key, not only in the number of vehicles but also in advancing the electrified technologies. While focusing on electrification and delivering the essential joy of driving, or creating new driving experiences, we remain vigilant and attentive to our customers’ voice.

“With this in view, we follow the principle of ‘the right product, in the right place, at the right time, leaving no one behind’.”

Record market performance

Lexus’ multi-pathway strategy of giving customers a range of electrified powertrain options has helped deliver record-breaking sales both in Europe and globally, benefit of the brand’s strongest model line-up yet. In 2024, its European performance reached a new high, rising by up to 20% on the previous year’s total to more than 88,000 units, making it one of the fastest-growing automotive brands in the region. These results also secured a 2.5% market share, Lexus’ largest yet.

Key contributors to this success were the all-new LBX compact crossover, which sold almost 24,000 units in 2024; plug-in hybrid (PHEV) models, which accounted for 20% of the sales total; and battery electric models, which doubled their sales volume compared to the previous year.

The strong performance in Europe made a significant contribution to delivering new record global sales for the brand, which increased by 3.3% to more than 850,000 vehicles.

The sales momentum has continued into 2025, with results from the first two months showing sales again rising by more than 20%.

The new Lexus RZ

The new RZ makes advances in all areas, reflecting Lexus’ role as the TOYOTA group’s leader in battery electric vehicle technologies to bring innovation and excitement to the driving experience.

It is the first model to offer Lexus’ new steer-by-wire system. This provides easy, smooth and intuitive control with approximately 200 degrees of turn from neutral to left or right lock.

It will also debut Lexus’ new Interactive Manual Drive, a virtual manual gear shift system. This will be available in the RZ 550e F SPORT, the performance flagship of the new range. The driver will use paddle shifts as if operating a mechanical eight-speed transmission, helping maximise the rewards of the all-wheel drive powertrain.

Lexus has also made enhancements to the DIRECT4 intelligent all-wheel drive system. With the rear eAxle now delivering power comparable to the front, there is even more flexibility in the distribution of front-rear driving power.

A complete revision of the RZ’s BEV system includes a higher capacity 77.0 kWh lithium-ion battery which will help deliver up to an additional 100 km of driving range (depending on the model and final homologation). Together with a new battery pre-conditioning function and a more powerful, 22 kW onboard charger, this will also reduce charging times.

Lexus has also enhanced the DIRECT4 intelligent all-wheel drive system. With increased rear eAxle power, there is greater flexibility in the balance front-rear drive torque, increasing stability and traction and raising the level of driver rewards.

The new RZ will be introduced in Europe from Autumn 2025.