2027 Lexus IS300 tipped for Malaysia launch – 2.0L turbo, RWD rival to BMW 3 Series and Mercedes-Benz C-Class

The Lexus IS could be making a comeback in Malaysia. According to recent reports, Lexus Malaysia may bring back its compact executive sedan as early as 2027, potentially giving local buyers another rear-wheel-drive alternative to the BMW 3 Series and Mercedes-Benz C-Class.

The model most likely to be considered for Malaysia is said to be the IS300 with a 2.0-litre turbocharged petrol engine. However, Lexus Malaysia has yet to confirm any plans to introduce the car, and neither its specifications nor pricing have been announced.

Exterior

The third-generation Lexus IS, known internally as the XE30, has been around for more than a decade. Rather than replacing it with an entirely new model, Lexus has continued refining its design and equipment.

At the front, the signature spindle grille sits lower, accompanied by redesigned air intakes that give the car a wider, more purposeful appearance.

The rear features a full-width LED light bar, replacing the more conventional taillight arrangement of earlier versions.

For buyers who prefer a sportier look, the F Sport package adds 19-inch lightweight alloy wheels, a ducktail rear spoiler and red brake callipers.

Interior

The latest interior updates address one of the older IS's main weaknesses: its dated infotainment layout.

The revised cabin features a 12.3-inch digital instrument cluster and a matching 12.3-inch central touchscreen, with wireless Apple CarPlay and Android Auto connectivity.

Lexus has also removed the previous Remote Touch controller, replacing the older interface with a more conventional touchscreen setup. USB Type-C ports are provided, while physical buttons and rotary controls remain for frequently used functions.

Audio equipment includes a standard 10-speaker Lexus sound system, with a 17-speaker Mark Levinson setup available as an option.

The cabin also offers ambient lighting with 14 preset themes and 50 customisable colours. Other interior details include the PROMINENCE colour scheme and Forged Bamboo trim, which adds a distinctive finish to the dashboard and cabin surfaces.

Powertrain

If the IS returns to Malaysia, the 2.0-litre turbocharged four-cylinder IS300 is considered a possible candidate, particularly given the country's engine-capacity-based road tax structure.

The engine is quoted as producing approximately 245 PS and 350 Nm of torque, paired with an eight-speed automatic transmission driving the rear wheels.

This combination is intended to provide smooth, progressive acceleration, with enough mid-range torque for motorway overtaking and everyday driving.

Other markets have offered different powertrains, including the 2.5-litre hybrid IS300h in Thailand and a naturally aspirated 3.5-litre V6 in North America.

For Malaysian buyers, a 2.0-litre turbo could offer a balance between performance and annual road tax costs, although the final engine choice remains unconfirmed.

Handling

The IS has traditionally appealed to drivers who prefer the balance and handling characteristics of a rear-wheel-drive sedan.

The updated model features a rack-parallel electric power steering system with variable gearing, designed to deliver more precise steering response.

It also uses an Adaptive Variable Suspension (AVS) system with linear solenoid valves, allowing the damping characteristics to adjust according to driving conditions.

The aim is to maintain ride comfort during daily commuting while providing better body control through corners and at higher speeds.

Safety

The new IS also features an updated Lexus Safety System+ driver assistance package.

Its Proactive Driving Assist (PDA) system can detect pedestrians and cyclists and provide assistance with deceleration when appropriate.

The Pre-Collision System (PCS) has improved detection capabilities for cyclists at night and motorcycles during the day.

Other available functions include adaptive cruise control with voice operation, road sign recognition and Lane Change Assist (LCA).

The Advanced Drive system also supports assisted driving in motorway congestion at speeds between 0 and 40km/h, helping with steering and following the vehicle ahead under supported conditions.

For Malaysia

At approximately 4,710mm long, the IS remains a relatively compact executive sedan, with a stronger emphasis on driving dynamics than outright cabin space.

Lexus Malaysia's current line-up is largely centred on SUVs such as the NX and RX, so the return of the IS would give buyers another option outside the increasingly popular SUV segment.

Based on the positioning and pricing of the BMW 3 Series and Mercedes-Benz C-Class, a price of around RM 300,000 is possible for the IS300 if it reaches Malaysia. This is only an estimate, not an official indication of pricing.

The IS could appeal to buyers who want a Japanese luxury sedan with rear-wheel drive, a distinctive design and a more traditional driving experience.

For now, however, the reported Malaysian launch remains a rumour. Lexus Malaysia has not announced an introduction date, confirmed the powertrain or provided any pricing details.