Lexus still ‘gold standard’ for luxury electrification
“Geopolitical clashes” and “Strait of Hormuz” may be the most overused words and locations nowadays, but we must pinpoint a “ground zero” for the latest economic storm we’re experiencing today. Before I proceed further into this column, I sincerely hope everyone is holding up well, especially our overseas workers caught up in the conflict in the Middle East. May all parties involved in this war come to their senses and restore stability in the region.
With everything that has happened so far, I see a “forced acceleration” in the automotive industry. The ongoing conflict in the Middle East is a significant tailwind for electrified vehicle sales globally and in the Philippines.
The situation in the Middle East is helping push an obligatory transition to electrified vehicles or xEVs (which includes battery electric vehicles or BEVs, hybrid electric vehicles or HEVs, plug-in hybrid electric vehicles or PHEVs), largely driven by instability in global oil markets and oil prices surging. This has helped trigger a shift in consumer behavior, including the faster adoption and penetration of the global EV market. Carboncredits.com, whose research focuses on carbon markets, alternative energy, and green technology, stated that faster adoption rates show global EV market penetration is now projected to hit 29 percent in 2026, outperforming previous forecasts of 27 percent.
That two-percent difference looks small, but on a global scale, it translates to a huge number of sales turnarounds. Those who once hesitated buying an EV due to “range anxiety” are now more “price anxious” at the pumps. In Europe and the United States, inquiries for electric and hybrid vehicles rose by over 30 percent immediately following the spike in crude prices. In Asia, particularly the Philippines, which receives a large chunk of the crude oil passing through the Strait of Hormuz, consumers have been particularly sensitive to these tensions.
Even before these clashes took place, however, luxury carmaker Lexus achieved record global sales of 882,231 units in 2025 (per Global Toyota), with electrified models leading the charge. Say what you want about Toyota being slow to warm up in the global EV race. The fact remains that Toyota (and by affinity Lexus) is still the world’s most trusted automaker, and that reputation will automatically tide it over to whatever next phase of mobility it decides to take on for its millions of global customers.
It helps that Lexus, Toyota’s affluent sibling, is holding its own reputation-wise. Lexus is widely considered one of the most reliable automotive brands, frequently topping dependability studies by JD Power and receiving top marks from the UK’s What Car? for its consistent quality.
In the local luxury segment, Lexus Philippines’ quiet dominance is evident, as it remains the “gold standard” for electrification. In 2025, Toyota Motor Philippines (TMP) reported that 91 percent of all Lexus units sold (1,691 out of 1,852) were electrified. The Lexus NXh and RXh crossovers remain the brand’s top performers in the Philippines, while the luxury LMh (the hybrid van we rode for a short stretch of the March 17–18 Go Electrified Drive) continues to see strong demand as high-net-worth individuals look to hedge against rising fuel costs without sacrificing premium mobility.
The Philippine market, in general, reached a record high of nearly 500,000 units in 2025, with xEVs now making up nearly 12 percent of total industry volume.
Lexus Philippines senior vice president Sherwin Chua Lim told Inquirer Mobility: “Interest in electrified Lexus vehicles continues to grow within the luxury hybrid segment in the Philippines, with rising inquiries for HEVs and BEVs, reflecting customers’ acceptance toward sustainable, forward-thinking mobility.”
Go Electrified ride and drive
With Toyota Motor Philippines chairman Alfred Ty officially announcing this month that the company expects xEVs (HEVs and BEVs) to account for 20% of the company’s total sales in 2026, Toyota’s “Beyond Zero” initiative is more relevant than ever.
Our March 17 journey kicked off at Solaire North in Quezon City, where I took the wheel of Toyota’s newest full-electric contender: The Urban Cruiser. A cousin to the Suzuki eVitara and manufactured in India, the Urban Cruiser carries an understated road presence.
The Urban Cruiser packs the 61.1 kWh LFP battery. Inside, the cabin is modern but sensible, featuring vegan leather (another win for our animal friends. Yay!) and a conventional parking switch. The Urban Cruiser keeps the interface simple and un-intimidating. The 10.1-inch monitor offers clear visuals of the front and rear surroundings.
It features Active Safety systems, including a Pre-Collision System, Lane Departure Alert, and Adaptive Cruise Control, just what you’d expect from a P2.135-million electric SUV.
The Urban Cruiser isn’t spectacular in a performance sense, but gets the job done. It really feels like a safe, quiet cocoon even at high speeds, though the suspension leans toward the “boaty” side of comfortable.
We also experienced the P7-million pinnacle of Lexus luxury: The LM. Driven by Jess Perlada, who chauffeured Toyota Chairman Akio Toyoda during his 2023 Philippine visit, the ride was nothing short of total serenity, with seat massagers and ventilated cushions.
On Day Two of the ride, we jumped into the Camry HEV and Toyota’s first dedicated BEV, the bZ4X.
There’s no denying that, from a mobility standpoint, we are now at a global crossroads. The choice between internal combustion engines and electric vehicles is no longer just about personal preference. It’s being dictated by a volatile world. Toyota’s aggressive expansion into electrified vehicles represents more than just a “green” shift; it’s a hedge against uncertainty. In an era where geopolitical tremors can change the cost of your commute overnight, having a diversified portfolio of hybrids and EVs isn’t just a corporate strategy. It’s a roadmap for survival.
