Why did Lexus discontinue the IS 300?
The IS 300 was discontinued largely due to weak demand for a compact luxury sedan in an era dominated by SUVs and electrified crossovers, coupled with the cost of updating an aging platform. Lexus shifted resources to more profitable and future‑proof models, and in several markets the IS 300 was pulled from the lineup.
Context: the IS lineage and the IS 300’s place
The IS line has long represented Lexus’ entry into sportier, nimble sedans. Over the years, the IS lineup has included various powertrains across markets—from a 3.0-liter inline-six to a 2.0-liter turbo four in more recent generations. As consumer preferences evolved toward larger sedans and SUVs, the IS family faced growing pressure to justify ongoing investment against its smaller size and shrinking sales share.
Market dynamics shaping a decision
As global demand shifted toward SUVs and electrified propulsion, automakers faced tough choices about which models to maintain. The IS 300, occupying a niche between Lexus’ volume ES sedan and its sportier LC/RC offerings, increasingly struggled to justify the investment needed to refresh and meet evolving standards.
Reasons behind the discontinuation
Several factors contributed to pulling the IS 300 from new-car catalogs in various regions. Below is a synthesis of the primary considerations that guided Lexus’ decision.
- Sales performance: The IS 300’s volumes lagged behind other Lexus models and rival compact luxury sedans, limiting its profitability and long-term viability.
- Cost of updating the platform: Keeping the IS current would require substantial engineering work to meet updated safety, emission, and technology standards, with uncertain return on investment.
- Portfolio realignment toward SUVs and hybrids: Lexus prioritized its strongest sellers and future products—especially SUVs and electrified models—reducing emphasis on aging compact sedans.
- Market trends and customer preferences: Demand has shifted toward larger sedans (like the ES) and crossovers, reducing the demand for a niche IS 300 variant.
Taken together, these factors pushed Lexus to retire the IS 300 from several markets where the model had become less viable, while still supporting other IS variants where they remained available.
What this means for buyers and alternatives
For buyers who previously considered the IS 300, the brand has steered customers toward other Lexus options that better fit current demand, performance goals, and efficiency targets. The following are common alternatives and nearby options in Lexus’ lineup.
- IS 350: In markets where it’s offered, the IS 350 provides a more potent V6 option and a similar sport-sedan character.
- ES: The more popular mid-size sedan that generally offers greater interior space, comfort, and efficiency, serving as the pragmatic choice for many buyers.
- NX and RX: Lexus’ compact and midsize SUVs, which have become the backbone of the brand’s sales and appeal to buyers who prioritized practicality and styling.
- Lexus electrified lineup: Hybrid and electrified models, along with the growing EV lineup (such as the RZ 450e in some markets), appeal to buyers seeking modern efficiency while still enjoying Lexus luxury and performance cues.
Availability varies by region and model year, so prospective buyers should consult their local Lexus dealer for current offerings and inventory.
Industry context and the road ahead
The move away from the IS 300 mirrors a broader automotive trend: automakers are thinning out slower-selling sedans in favor of SUVs and electrified models that align with global emissions targets and consumer demand. For Lexus, the strategy involves strengthening core sedans like the ES, expanding the electrified portfolio, and growing its SUV lineup to maintain momentum in a competitive luxury market.
Summary
The discontinuation of the IS 300 stems from declining demand for a compact luxury sedan, the high cost of updating an aging platform, and a strategic shift toward SUVs and electrified vehicles. While the IS 300 was once a staple of Lexus’ sport-sedan lineup, the brand’s current direction prioritizes models with stronger sales, greater efficiency, and clearer alignment with future mobility trends. Buyers now typically look to the ES, NX, RX, or Lexus’ electrified offerings as the contemporary entry points to the brand’s luxury experience.
Why did Lexus stop making the is?
Lexus is discontinuing the IS sedan primarily because its current generation is over a decade old and will be replaced by newer models, with the IS-500 and IS-300 production ending in late 2025. Other contributing factors include the need to shift to electrified platforms, evolving safety and emissions regulations in some markets, and an outdated interior infotainment system. While a new generation is expected to be released, the future lineup will likely have more electrified options and will not include a V8 engine.
This video discusses the potential reasons for the discontinuation of the Lexus IS series: 59sLSFTYouTube · Jun 21, 2025
Reasons for discontinuation
- Aging platform: The current IS generation has been around since 2013, making it the brand's oldest model. It is due for a complete redesign.
- Shift to electrification: Lexus is moving toward more electrified vehicles, and the IS will likely be replaced by a model with more hybrid and electric options.
- Outdated technology: The interior features an outdated Remote Touch interface, and the overall design is no longer competitive with modern rivals.
- Safety and emissions standards: Some markets, like Australia, have discontinued the IS due to new safety regulations. Other markets may follow as regulations evolve.
- Production changes: The discontinuation of the IS 500 and other models may free up production capacity for new vehicles at Lexus's Tahara plant.
You can watch this video to learn about the potential future of Lexus's lineup, including the possibility of new models replacing the IS: 1mKirk KreifelsYouTube · Sep 11, 2025
Future of the IS
- A new generation of the IS is expected to be released around 2026.
- The future IS will likely have more electrified powertrains and will not feature a V8 engine.
- Some markets may see a return of the IS nameplate, potentially with an electrified replacement that fits the new design philosophy.
What are common problems with the IS300?
Top Lexus IS300 Problems
- Check Engine Light Due to EVAP System Failure.
- Check Engine Light and Lack of Power Due to Failed Mass Air Flow Sensor.
- Lexus IS300 won't start despite strong battery current, seeking diagnostic suggestions.
- Lexus IS300 bald front tires and worn front brake pads issue.
Is Lexus discontinuing the IS300?
Yes, Lexus will discontinue the current generation of the IS 300, along with the IS 350, IS 500, and the RC lineup, with production ending in November 2025. A new, redesigned IS is expected to arrive for the 2026 model year, and while it will have a different powertrain and design, the "IS 300" designation may continue in the future.
- Production end date: Lexus will end production of the current IS 300, IS 350, and IS 500 in November 2025.
- Replacement model: The company plans to release a redesigned IS for the 2026 model year, which will feature updated styling and likely a new hybrid powertrain.
- Current availability: Sales will conclude once the November 2025 production allocation is filled.
- Discontinued models: The IS 300, IS 350, IS 300h, IS 500, and the entire RC coupe lineup will be discontinued at this time.
- Future of IS 300: While the current IS 300 is being discontinued, the name may return for the new generation, though likely with different mechanical components, as seen in reports mentioning a new hybrid powertrain for the 2026 IS, say Yahoo! Autos.
Is there going to be a 2025 Lexus IS?
What's New for 2025? To celebrate the IS's 25th year, Lexus is offering two limited-edition models of the top-spec IS500 F Sport Performance. The Special Appearance model will be limited to only 180 units, and all come painted Flare Yellow and wearing cool-looking 19-inch BBS wheels.
