Lexus IS Sedan to Cease Production in Late 2025

After nearly three decades, the Lexus IS sedan will be discontinued, concluding production in November 2025. Initially introduced in 1998, this model aimed to compete with the BMW 3 Series and Mercedes-Benz C-Class.

A Promising Start

Originally marketed as the Toyota Altezza in Japan, the Lexus IS debuted with IS 200 and IS 300 variants. Frequently equipped with inline 6-cylinder engines and 5-speed manual transmissions, it targeted younger buyers seeking a blend of performance and distinctive style. A standout of this generation was the Sportcross variant, now highly prized among Japanese domestic product enthusiasts.

Evolving Power and Sophistication

The second generation, appearing in 2005, introduced the IS 250, IS 350, and the IS F, the first high-performance “F” model, powered by a 5.0-liter V8 engine. The design language shifted towards maturity, emphasizing luxury while retaining some driving appeal. However, according to Statista, Lexus’s overall U.S. market share in 2023 was just 2.5% (Statista).

Struggles in the Final Generation

Launched in 2013 as a 2014 model, and refreshed in both 2017 and 2020, the most recent IS generation aimed to attract younger drivers with sharper styling and enhanced handling. The V8 engine was revived in 2021 with the IS 500 F Sport Performance, exclusive to North America and Japan. Despite these efforts, the IS faced challenges competing against rivals like the BMW 3 and 4 Series, Mercedes C-Class, and Audi A3 and A4.

The End of the Line

Lexus has confirmed that production of the IS 300 and IS 500 models will cease in November 2025. Once current inventory is depleted, the compact sedan will exit the market after a 27-year run that strived to balance luxury with driving excitement. As of now, there are no announced plans for a replacement model in Canada or the United States for 2026.