The mainstream car market is getting more and more well-rounded each year, and this has forced the luxury car market to really step up its game. A lot of us will opt straight for a luxury European model when buying a new high-end car, with models like the new Audi A3 making for the ideal first luxury car and more established beasts like the BMW 3 Series as a top choice.
It is Lexus, though, which has for years been taking on the might of the European and American luxury market, that has flipped the status quo on its head this year. Lexus has released an updated version of its mid-sized luxury sedan, and it is all sorts of impressive in terms of value, options, and performance.
The Modern Luxury Car Market Is Burgeoning
The modern luxury sedan market is more competitive than ever, and that is largely because mainstream cars have closed the gap. A lot of us now expect top-class materials, advanced tech, and useful powertrains as standard, not upgrades. The pressure has been felt by the likes of BMW, Mercedes, and Audi, who have now pulled out the stops to justify their high price tags.
Despite some of the high MSRPs, models like the BMW 3 Series, Mercedes-Benz E-Class, and Audi A6 remain popular because they offer a blend of refinement, performance, and prestige that we still love.
At the same time, the advancements in powertrain tech are reshaping what big spenders want. Efficiency is now also desired; where luxury cars used to be excessive on purpose, now we want value for our money. That means the gap between traditional luxury models and newer, value-based options is tightening, and a segment where stalwarts once ruled is now being challenged. While BMW and Mercedes raised prices above $60,000, Lexus found a different path.
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The 2026 Lexus ES Quietly Rewrites Luxury Value
There are three main grades of the 2026 Lexus ES, and while starting prices are well within the range of buying a new luxury car, it is what you get for your money and the lower prices of the lineup compared to its rivals that are making waves in the luxury segment. The 2026 Lexus ES lineup and MSRPs are as follows:
- 2026 Lexus ES 350e. MSRP: $49,700.
- 2026 Lexus ES 350h. MSRP: $50,995.
- 2026 Lexus 500e. MSRP: $51,795.
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- Base Trim Engine
-
2.5-liter inline-4 hybrid
- Base Trim Transmission
-
e-CVT
- Base Trim Drivetrain
-
Front-Wheel Drive
- Base Trim Horsepower
-
244 HP
- Base Trim Torque
-
175 lb.-ft. @ 5000 RPM
- Make
-
Lexus
- Model
-
ES
- Segment
-
Midsize Luxury Sedan
It can be argued that the new Lexus ES is a masterstroke by Lexus. Last year, the Lexus ES lineup consisted of models that came equipped with a V6 and a hybrid inline-four; there was no EV option. This year, you get a choice between EV power and hybrid power only.
The new ES lineup is available in one hybrid grade (the ES 350h) and two all-electric grades (the 350e and 500e). While it is not anything new for a luxury marque to release lines of all-electric sedans, the 2026 ES EV lineup is a huge overhaul, and the choice of gas/electric power has come at the right time (think fluctuating gas and oil prices).
Lexus is also playing a clever game with the release of the new ES and its powertrains. It makes the new lineup a very versatile and easily adaptable one for Lexus. A recent CarBuzz review of the 2026 Lexus ES lineup does a good job of summing up why it works so well.
“If ever there was a model that could predict the future of EV demand in the premium segment, the 2026 Lexus ES is it. And if buyers demand more hybrids, Lexus can just shift production in favor of that powertrain, wait for the swing to EVs, and shift production again. The 2026 Lexus ES is proof that, yet again, Toyota’s seemingly slow approach to the EV game was a complete masterstroke.”
How The ES Matches German Luxury For $10,000 Less
The new ES lineup proves you can have more for your money. Starting prices are below $50,000; there have been huge updates all around that make it a force to be reckoned with, and the calm luxury doesn’t cost the earth. To put pricing into perspective, the 2026 BMW 530i has a starting price of $60,500; the 2026 Mercedes-Benz E-Class has a starting price of $63,900; and the 2026 Audi A6 has a starting price of $64,100.
This year, it makes more sense to buy a new ES than any German luxury sedan. With reasonable pricing and a smart build working heavily in its favor, the new ES doesn’t just look good on the spec sheet. Instead, it is designed to work out on the road and provide levels of everyday luxury usually reserved for higher prices. But lower prices mean nothing if the car can’t match German luxury and performance. Can the ES actually compete on substance?
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The newest ES lineup is designed as a rethink of an already-popular and impressive sedan. The outgoing model was designed as a competent and comfortable model, but it was certainly rooted in a more traditional layout, with a V6 option and a hybrid option.
Alongside the new powertrain options, a big part of the new ES’s change comes from its size. The new ES is now 6.5 inches longer overall and benefits from a 3.1-inch increase in wheelbase. That may not sound like a huge thing, but in reality, it changes how it feels inside. Your rear passengers get more legroom and a better seating position, while the wider stance creates a more imposing look.
|
2026 Lexus ES |
2026 BMW 5 Series |
2026 Audi A6 |
|
|---|---|---|---|
|
Length |
202.3 Inches |
199.2 Inches |
196.8 Inches |
|
Width |
75.5 Inches |
74.8 Inches |
73.8 Inches |
|
Height |
61.2 Inches |
59.6 Inches |
57.4 Inches |
According to Lexus, the new ES has 42.4 inches of front legroom, 39.3 inches of rear legroom, and a maximum cargo capacity of 13.3 cubic feet. In comparison, the new 5 Series has 41.7 inches of front legroom and 37 inches of rear legroom. The new ES has been designed to be a real-world luxury model, not just a performance-focused statement.
Last year’s ES lineup was built for comfort, and pretty much comfort alone; this year, the lineup has been designed to balance both easy comfort and more refined feedback when you push it. The new ES is by no means a transformation into a sports sedan, but it is now slightly closer to what the entry-levels of the 3 Series and A3 can achieve on the road from build.
Executive Comfort Without The Long-Term Cost
The 2025 Lexus ES’s interior was solid. However, with the introduction of the 8th generation of the ES this year, the ES gets a lot of plush updates that make its price look even more appealing. The new models are fitted with a 14-inch central touchscreen paired with a 12.3-inch digital instrument cluster, both running the latest Lexus Interface system with a redesigned UI, widget-based home screen, and OTA updates.
You also get dual Bluetooth connectivity, integrated drive recording, and a much cleaner layout compared to the old model. Physical controls are still featured. Lexus has added a soft-touch control strip for climate functions. That means that you get a fine blend of digital minimalism and usability, something that a fair few modern luxury sedans fail to deliver.
Lexus has always championed refined plushness in the cabin, but even the base models of the new ES are fitted with NuLuxe upholstery, a patterned dashboard, and ambient lighting. Higher trims get semi-aniline leather, layered bamboo trim with embedded LED lighting, and a lot more intricate detailing around the cabin.
Models like the new 5 Series get Veganza leather upholstery, a leather-wrapped steering wheel, crisp ambient lighting, a large aluminum-style dash, and heated seats, so it is very posh; however, it does cost you over $10,000 more than the new ES base trim.
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Lexus Reliability That Upsets The Luxury Market
Being the luxury arm of Toyota has always played in Lexus’ favor, and according to the 2026 Vehicle Dependability Survey (VDS), Lexus is still leading the way in terms of reliability; they are in the top position out of all brands. According to the survey, Lexus models only experience 155 problems per 100 vehicles (PP100). The closest German rival is Porsche, with 182 PP100, while BMW has a reported 198 PP100, Mercedes has a reported 235 PP100, and Audi has a reported 244 PP100.
You get a choice between three drivetrains and the rock-solid Toyota/Lexus build quality. In typical Lexus fashion, the starting prices are reasonable for its caliber, and the running costs are predicted to also be manageable. RepairPal says that the average yearly maintenance cost for an ES 350 is just $468 and rates it 4.5 out of 5.
To put this into perspective, RepairPal says the BMW 5 Series will cost you $620 a year to maintain. The E-Class will cost you $908 for maintenance, and the A6 will cost you $913 a year to maintain. CarEdge also reports that it will cost $61,379 over five years to own a new Lexus, while it will cost you $79,118 for an Audi and $100,507 for a BMW over the same time.
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There are currently no fuel economy figures for any of the new ES lineup on FuelEconomy.gov, but it is estimated that the ES 350h will still be an exceptionally fuel-efficient luxury sedan, with reports suggesting that it will be able to achieve up to around 44 combined mpg.
Lexus says that the ES 350e will have an estimated range of 307 miles, while the most powerful ES 500e will have an estimated range of 276 miles. The lower estimated fuel cost for a new ES 350h (using information on the 2025 ES 300h and the ES 350 on FuelEconomy.gov) of between $1,350 and $2,400 just ticks another box.
FuelEconomy.gov says that the 2026 A6 can achieve 24 combined mpg and will cost you, on average, $3,000 a year for fuel. Yes, you get the four rings and an exceptionally powerful V6 under the hood, but you also get higher starting prices and high fuel costs.
Also, the new 550e xDrive is an admittedly impressive plug-in hybrid sedan that has been calculated to achieve up to 68 MPGe and has an all-electric range of around 34 miles. However, starting prices are $75,500, so any fuel savings you may make in the mid- to long-term aren’t likely to make up for the higher MSRP.
Real Lexus ES Performance, Finally
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The maximum output of the 2025 ES is 302 horsepower and 267 pound-feet of torque, courtesy of the 3.5-liter V6 fitted to the ES 350. This translates to 0–60 mph times of around 6.6 seconds, while the 2025 ES 250 can reach 60 in between 8.1 and 8.6 seconds.
|
Lexus ES 350h |
Lexus ES 350e |
Lexus ES 500e |
|
|---|---|---|---|
|
Engine/Motor |
2.5-Liter Inline-Four Hybrid |
Single Motor w/ 74.7 kWh Battery |
Dual Motor w/ 76.96 kWh Battery |
|
Horsepower |
243 hp |
221 hp |
338 hp |
|
Torque |
175 lb-ft |
198 lb-ft |
323 lb-ft |
|
Driveline |
Front-Wheel Drive or All-Wheel Drive |
Front-Wheel Drive |
All-Wheel Drive |
This year, the base model’s engine output (ES 350h) is lower, but it is still perky enough to get you to speed in reasonable times while still offering good fuel returns. Plus, there is the all-electric ES lineup: power is impressive, and range is useful.
Lexus ES 500e Brings Speed To The Lineup
Early tests report that the new FWD ES 350h can reach 60 mph in around 7.4 seconds, and the AWD model shaves 0.2 seconds off that time. Straight away, it is quicker than the base model of the 2025 ES. Plus, the 0–60 times are still respectable for getting to highway speeds.
The new ES 350e is slightly slower, with 0–60 mph times of around 7.8 seconds. The new ES 500e, fitted with the dual motors and DIRECT4 AWD, is different, though. Early reports say that it can get you to 60 mph in 5.4 seconds. That is close competition for the new 530i.
2026 Lexus ES Performance Vs. Its Rivals
This year’s 530i comes equipped with a 2.0-liter BMW TwinPower turbocharged inline-four good for 255 horsepower and 295 lb-ft. 0–60 mph times are impressive at 5.9 seconds; the 2026 M5 can spit out 717 horsepower and hit 60 mph in around 3 seconds, the new S6 Sportback e-tron can hit 60 mph in around 3.5 seconds, and the base model A6 (Premium trim) gets a 362-horsepower/406-pound-foot turbocharged TFSI V6 and gets you to 60 in around 4.5 seconds.
There is no competition for outright speed against the Germans, but the new ES lineup does things differently for less, and you get usable all-electric power from the 500e, which brings Lexus’s new luxury sedan lineup into the top-tier leagues.
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The New Lexus ES Takes On The Whole Luxury Market
While German rivals still hold an advantage in outright performance and badge prestige, the 2026 Lexus ES shifts the focus of the luxury sedan market toward value and long-term ownership rather than headline-grabbing figures. With lower starting prices and estimated maintenance and running costs, the new ES takes on the market stalwarts that have defined the market for so long.
Where the new Lexus ES lineup has nailed it is in terms of low starting prices for its caliber, high-end levels of interior luxury, a commanding road presence, and good choices of powertrains that are easy to use every day.
The ES has low estimated long-term running costs, a clear upgrade compared inside and out to last year’s model, and the same calm, refined design that has made Lexus such a powerhouse in the market. There is no trying to outgun its German competitors with power and pace; it is just outsmarting them with more useful, comfortable, forward-thinking, and reliable design.
Sources: Lexus,RepairPal, CarEdge, andJ.D. Power.