The upcoming BMW i3 and Mercedes-Benz C-Class with EQ Technology will reportedly have some competition out of Japan.

Best Car Web reports the replacement for the Lexus IS mid-size luxury sedan will launch in 2027 with an electric powertrain.

In fact, the Japanese publication reports the next-generation IS will be offered exclusively with electric power, meaning Lexus will no longer have a direct rival for combustion-powered sports sedans like the regular C-Class and 3 Series.

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While the IS was withdrawn from Australia in 2021 as it didn’t meet new safety regulations, it has lived on overseas and even received another facelift for 2026.

However, the Japanese 3 Series rival is showing its age. The current generation entered production in 2013, and though it received a reskin for 2021 its interior wasn’t substantially changed, something remedied with an update for 2026.

Since the launch of the first-generation IS in 1999, Lexus’ sports sedan has sat at a similar price point to the larger, plusher, front-wheel drive ES sedan.