The 2025 Lexus NX350h Sports Luxury sits at an interesting crossroads in Australia’s competitive premium SUV market. With a price tag of $79,100 before on-road costs, this hybrid SUV positions itself as a more affordable alternative to German rivals while promising the fuel efficiency and reliability that Lexus is known for. But does it deliver on all fronts? Our comprehensive review reveals some surprising truths about this popular hybrid SUV.
Market Position: David Among Goliaths
In Australia’s premium mid-size SUV segment, the Lexus NX holds a remarkable position. It’s the second best-selling vehicle in its class, trailing only the electric Tesla Model Y. This achievement becomes even more impressive when you consider it outsells established German rivals including the BMW X3, Audi Q5, and Mercedes-Benz GLC.
The secret to the NX’s success lies partly in its pricing strategy. While a base BMW X3 or Mercedes-Benz GLC commands a significantly higher price, the NX350h Sports Luxury undercuts these premium competitors by thousands of dollars. However, it faces stiff competition from the Genesis GV70, which offers more features for just a few hundred dollars less, though with considerably higher fuel consumption.
The NX range itself is extensive, offering buyers choice across four powertrains, multiple drive configurations, and four trim levels. This variety allows Lexus to capture a broader market segment than many competitors who focus on fewer variants.
Interior: Contemporary Design with Mixed Execution
Stepping inside the NX350h Sports Luxury reveals a thoroughly modern cabin that showcases both the strengths and weaknesses of contemporary automotive design. The centerpiece is a substantial 14-inch touchscreen that runs Lexus’ latest infotainment system, which shares its DNA with Toyota’s interface. For those upgrading from Toyota vehicles, this familiarity is welcome, and the system represents a significant improvement over previous Lexus infotainment offerings.
The material quality throughout most of the cabin is exemplary. The dashboard top feels luxuriously soft, while genuine wood trim adorns the doors, adding an authentic premium touch. However, the design philosophy stumbles with an overabundance of smudge-prone gloss black plastic that dominates the center stack and console. For a vehicle positioned as the pinnacle of the NX range, this feels like a missed opportunity to showcase more sophisticated materials.
Technology and Convenience Features
The technology package is comprehensive, featuring a head-up display, surround-view camera system with transparent chassis view, and ambient lighting that enhances the cabin atmosphere without resorting to the flashy multi-color displays found in some German competitors. The instrument cluster combines traditional analog gauges with an 8.0-inch central screen, maintaining a connection to Lexus’ heritage while embracing modern functionality.
One particular design choice that divides opinion is the steering wheel control layout. Lexus has implemented four arrow switches on each side, controlled by page buttons beneath them. While this reduces the total number of physical buttons, it can require more button presses to access certain functions, creating a learning curve for new owners.
Comfort and Space
The front seats exemplify Lexus’ reputation for comfort, featuring supple leather upholstery, heating, ventilation, and full power adjustment with memory settings for the driver. The driving position is excellent, offering good visibility and intuitive control placement.
Rear passenger accommodation is adequate but not segment-leading. While comfortable for most journeys, the space doesn’t quite match what you’ll find in larger German rivals. A modest driveline hump affects center-seat legroom, though the inclusion of air vents, USB-C outlets, and other amenities demonstrates attention to passenger needs. Families will appreciate the comprehensive child seat anchor points, including three top-tether and two ISOFIX points.
Cargo and Storage: Practical but Not Outstanding
With 520 liters of cargo space that expands to 1,141 liters with the rear seats folded, the NX350h offers respectable but not class-leading storage capacity. The absence of a spare tire in favor of a repair kit may disappoint some buyers, though the multiple storage compartments and netted sections help organize smaller items effectively.
The boot floor design includes several practical touches, such as compartments for odds and ends and retention systems to prevent groceries from sliding around during transport. The 60/40 split-folding rear bench adds versatility for longer items.
Performance: The Hybrid Advantage with Caveats
The heart of the NX350h lies in its sophisticated hybrid powertrain, combining a 2.5-liter four-cylinder engine with an electric motor to produce a combined system output of 179kW. This setup delivers on Lexus’ efficiency promises, achieving an impressive real-world fuel consumption average of 4.9 liters per 100km – actually bettering the official combined claim by 0.1L/100km.
Powertrain Refinement
The hybrid system’s operation is impressively seamless, with smooth transitions between electric and petrol power that many drivers won’t even notice. At low speeds, the NX350h can operate purely on electric power, with the petrol engine engaging smoothly when additional power is required. The regenerative braking system feels natural and effectively tops up the battery during deceleration.
However, the driving experience reveals some compromises. The engine note lacks the refinement expected from a premium SUV, producing a somewhat grumbly sound characteristic of four-cylinder Lexus models. While noise suppression keeps wind and tire noise well-controlled, the engine’s character occasionally intrudes into the cabin experience.
Ride and Handling: The Sports Luxury Paradox
Perhaps the most significant disappointment in the NX350h Sports Luxury is its ride quality, which fails to live up to expectations set by the Lexus badge. The culprit appears to be the combination of large 20-inch alloy wheels and the absence of adaptive dampers that are found in the F Sport variant.
Ride Quality Concerns
The result is a ride that feels unnecessarily stiff and lumpy, particularly over rough surfaces where the suspension feels unsettled. Small potholes produce a firm thwack that reverberates through the cabin, while larger bumps can cause the suspension to crash uncomfortably. This firmness wouldn’t be as problematic if it translated to genuine sporting character, but the NX350h Sports Luxury doesn’t deliver the dynamic engagement that might justify the compromised comfort.
Handling Characteristics
On winding roads, the NX350h feels composed but uninspiring. The steering offers appropriate weighting but lacks the feedback that enthusiastic drivers crave. There’s a tendency for the vehicle to float slightly over undulations, taking a moment to settle, which further undermines confidence in spirited driving situations.
This represents a particular disappointment when compared to other Lexus models like the ES sedan and RX crossover, which demonstrate that the brand can successfully adapt Toyota platforms while maintaining the plush ride quality expected from a premium vehicle.
Safety and Driver Assistance: Class-Leading Protection
The NX350h Sports Luxury excels in safety, earning a five-star ANCAP rating based on comprehensive 2022 testing. The scores across all categories are impressive: 91% for adult occupant protection, 89% for child occupant protection, 83% for vulnerable road user protection, and 92% for safety assist systems.
Advanced Driver Assistance
The driver assistance suite works effectively without being intrusive. The lane-keep assist provides gentle guidance back into the lane without the constant tugging found in some systems, while the adaptive cruise control integrates well with Lane Tracing Assist to provide effective lane-centering capabilities.
The surround-view camera system, while not offering the highest resolution available in the segment, provides adequate assistance for parking and maneuvering in tight spaces. The inclusion of a transparent chassis view adds functionality for off-road or obstacle navigation scenarios.
Value Proposition: Weighing the Compromises
At $79,100 before on-road costs, the NX350h Sports Luxury presents a complex value equation. On the positive side, it significantly undercuts German rivals while offering exceptional fuel economy that few competitors can match. The comprehensive safety package, solid build quality, and extensive warranty coverage add to its appeal.
Ownership Considerations
Lexus supports the NX with a five-year, unlimited-kilometer warranty and capped-price servicing for five years or 75,000km, with an average annual service cost of $595. The inclusion of three years of Lexus Encore access, providing complimentary loan cars during servicing, demonstrates the brand’s commitment to customer care.
However, the Sports Luxury variant specifically presents some questionable value choices. The ride quality compromises introduced by the 20-inch wheels, combined with the lack of adaptive suspension found in the F Sport variant, make it difficult to recommend over the more affordable Luxury trim or the more dynamically capable F Sport.
The Competition Landscape
In the context of its competitive set, the NX350h Sports Luxury occupies an unusual position. It offers better fuel economy than almost any rival except diesel-powered alternatives like the Audi Q5 diesel, yet it can’t match the driving dynamics or luxury ambiance of its German competitors.
The Genesis GV70 presents perhaps the strongest alternative, offering more standard equipment and superior ride quality for similar money, though with significantly higher fuel consumption. For buyers prioritizing efficiency above all else, the NX350h remains compelling, but those seeking the complete premium SUV package may find better options elsewhere.
A Flawed Gem
The 2025 Lexus NX350h Sports Luxury represents both the strengths and limitations of Lexus’ current approach to the premium SUV market. Its exceptional fuel economy, comprehensive safety package, and solid build quality make it an appealing choice for efficiency-conscious buyers who want premium badge cachet without German pricing.
However, the specific Sports Luxury variant struggles to justify its position in the range. The ride quality compromises introduced by the large wheels, combined with the lack of sporting character to justify them, make it a difficult recommendation compared to other NX variants.
For buyers considering the NX350h range, the Luxury trim offers better value with improved ride comfort, while the F Sport provides genuine dynamic improvements to justify its firmer suspension setup. The Sports Luxury sits uncomfortably between these two, offering luxury appointments at the cost of ride refinement without providing compensating benefits.
In the broader context of Australia’s premium SUV market, the NX350h succeeds in offering a compelling alternative to traditional choices, but buyers should carefully consider which variant best matches their priorities. The hybrid powertrain technology and overall package remain strong, but the Sports Luxury’s specific compromises prevent it from being an unreserved recommendation.