Twenty years ago at the AutoMotor exhibition, Lexus launched in Israel, the first luxury brand from the East and a successful attempt by Toyota to compete with the German manufacturers that dominate the market. It was received in Israel with fewer raised eyebrows than at its global launch in 1989, following its success in the US market, which also exposed it to many Israelis.
The result: Nearly 24,000 Lexus models have been sold in Israel since then, 21,500 of them still with valid registration, 9 out of 10 cars. This is also due to the fact that most of Lexus’ sales in Israel were accumulated in the last decade and even in the last five years. As a result, its fleet is relatively young, although it has managed to build a reputation for reliability and lower maintenance costs compared to competitors.
In 2025, Lexus delivered 2,537 cars in Israel, compared to 2,212 Audi models, 2,809 Mercedes, and 4,362 BMW. Almost all of the manufacturer’s cars in Israel were sold through the official importer and not via parallel imports. However, Lexus still has a more limited model lineup, and despite adopting the Japanese reputation for quality and craftsmanship, it is not easy to compete with the 140-year history of a brand like Mercedes.
Lexus’ market share in Israel is relatively high, ranking fourth in Europe, and the sales volume was enough to place it among the 20 largest markets for Toyota’s luxury division. Some mass-market brands have achieved even better rankings within their manufacturers, but none of them are luxury brands.
Lexus was the first to launch a hybrid luxury model, and in 2026 it will become the first luxury brand to stop selling pure gasoline models in Israel. The entire lineup will be based on hybrid, plug-in hybrid, and electric models. Among the latter is the RZ crossover, which, as promised, is now launched after a facelift, four years after it was revealed globally.
The RZ is based on a platform used by Toyota (bZ4X, C-HR+) and Subaru models (Solterra, among others), but if in the Volkswagen Group Audi and Skoda can share platforms and other components, the Japanese are also allowed to save costs.
The facelift increases battery capacity from 71 kWh to 77 kWh, which accordingly increases the range of the base model by about 100 km to 558 km. There are also improvements in the drivetrain and charging speed, which now stands at 22 kW in slow charging instead of 11 kW as before and compared to most competitors. Fast charging, however, is slower than some rivals and remains at 150 kW.
But the main innovation is a new sport version at the top of the range, equipped with Steer-by-Wire steering: There is no mechanical connection between the steering wheel and the wheels, no steering column, and steering commands are transmitted electronically only. The steering ratio is sharper at urban speeds and during parking, and less so on highways.
The RZ will be the first vehicle with this technology derived from the world of fighter jets, where it was introduced in the F-16 in 1974, which was also imported to Israel through regular procurement. It also exists in the Tesla Cybertruck, of which only a few dozen units arrived in Israel through parallel imports. At the same time, the model is equipped with a yoke-style steering wheel, another feature previously seen only in Tesla, which tried to make it standard in the Model S but later withdrew it due to customer complaints. In the RZ it will be standard only in the two top versions, F Sport and Takumi. Another new feature in the sport model is a “manual” mode simulating 8 “gears”, with engine sound imitation and a rev counter display.
The lineup includes three powertrains and four trim levels.
RZ350e Kyushu (from NIS 300,000): Front-wheel drive with 224 hp, 7.5 seconds from 0 to 100 km/h, 160 km/h top speed, and as mentioned, a 558 km combined range.
Equipment includes 18-inch wheels, a 14-inch multimedia screen with wired Android Auto and Apple CarPlay, synthetic leather upholstery, a panoramic roof, heated electrically adjustable front seats, a power tailgate, and surround cameras.
RZ350e Hadori (from NIS 320,000): Adds a head-up display, ventilated front seats, and driver seat memory settings.
RZ500e Takumi (NIS 420,000): Upgrades to all-wheel drive with 380 hp, 4.6 seconds, 180 km/h, and a reduced range of 457 km. Additional equipment includes 20-inch wheels, upgraded upholstery, an electrochromic panoramic roof, a Mark Levinson sound system, rear seat heating, and steer-by-wire.
RZ550e F Sport (from NIS 440,000): Power rises to 408 hp, 4.4 seconds, 180 km/h, and the range slightly increases to 463 km. Added features include a rear spoiler, sport seats, automatic parking assist, and simulated gear shifting.
The basic vehicle warranty is three years or 100,000 km, and 8 years or 160,000 km for the battery. The battery warranty can be extended for NIS 1,000 per year after it expires, up to one million km or 10 years.