Toyota, Lexus to streamline by merging EV, hybrid, ICE models - Lexus ES as template

In response to shifting market demands and the growing complexity of their vehicle portfolios, both Toyota and Lexus have announced plans to simplify their respective lineups by merging their upcoming electric and combustion-powered vehicles under unified platforms, body designs, and model designations. This echoes the issue that had been faced by other automakers such as BMW, Mercedes-Benz, and Audi, who had previously kept their EVs and legacy models well apart.

Rather than developing distinct models for battery electric vehicles (EVs), hybrids, and plug-in hybrids, the brands are moving toward offering multiple powertrain options within a single vehicle architecture, offering them as variants of a single model. 

Until now, like others taking a multi-prong approach to electrification, Toyota and Lexus have taken a siloed approach to powertrains. Dedicated EVs such as the Toyota bZ4X and the Lexus RZ were designed as unique models, separate from their combustion-engine siblings. Similarly, traditional hybrids and PHEVs like the RAV4 Hybrid and PHEV, or the Lexus RX, have remained on platforms built specifically for internal combustion. 

As one might have expected, this approach has led to increased complexity both in manufacturing and in showrooms. According to Andrea Carlucci, Toyota-Lexus Vice President of Marketing and Planning for Europe, this fragmentation has become unsustainable. "We have been focused on a wide range of vehicles, and that causes a complexity challenge," Carlucci told Autoblog. “We should simplify the number of silhouettes, with multiple powertrains. We are trying to navigate our way through it.”

A key motivation behind the shift is the unpredictable, even declining pace of EV adoption. With demand fluctuating across regions, having separate vehicle lines for each powertrain limits flexibility and inflates production costs. Offering multiple drivetrains within the same model allows Toyota and Lexus to adjust their output based on consumer preferences and regional regulations more easily.

The upcoming Lexus ES sedan serves as the prototype for this strategy. Unveiled at the Shanghai Motor Show, the new-generation ES will be offered globally with both hybrid and fully electric variants, all built on a single body and platform—Toyota’s versatile TNGA-K architecture. The ES lineup includes the ES300h and more powerful ES350h hybrids, along with the all-electric ES350e and dual-motor ES500e. All variants will be offered in either front- or all-wheel drive configurations.

This modular approach to powertrain options is expected to extend across more models in the coming years. While exact future model plans remain under wraps, vehicles like the RAV4, Camry, and NX, already on shared TNGA-K platforms, are the most likely candidates for the multi-powertrain strategy.

However, not every nameplate will follow this route. Carlucci was quick to clarify that halo models like the GR performance line and the iconic Land Cruiser will remain exceptions. “We won’t simplify away the GR models. GR isn’t just profit; it’s intangible value to Toyota,” he emphasised. “And we won’t stop the LandCruiser.”