If you enjoy the experience of a luxury vehicle, but you don’t want to compromise on efficiency, there is only one brand that fits the bill: Lexus. The leading luxury automaker in the U.S. has never been more popular, and it’s clear to see why its success hasn’t peaked, but rather, keeps growing. One of the many reasons why Lexus has and is such a dominant force is that they offer the most fuel-efficient luxury car on the market, the 2025 Lexus ES 300h.
- Base Trim Engine
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2.5L I4 Hybrid
- Base Trim Transmission
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CVT
- Base Trim Drivetrain
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Front-Wheel Drive
- Base Trim Horsepower
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176 HP @5700 RPM
- Base Trim Torque
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163 lb.-ft. @ 3600 RPM
- Base Trim Fuel Economy (city/highway/combined)
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43/44/44 MPG
- Base Trim Battery Type
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Lead acid battery
- Make
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Lexus
- Model
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ES Hybrid
This hybrid model, along with the 2026 Lexus NX 450h+ (a plug-in hybrid), is by far the best gas-saving luxury vehicles available on the market today. For the purposes of this feature, we are excluding BEVs from consideration, as our focus is on fuel-efficient luxury vehicles, not fully-electric luxury vehicles. Curious to know what makes this hybrid Lexus model so appealing and if it would be the right choice for you? Stick around as we break down the details.
The 2025 Lexus ES Hybrid Is The Most Fuel-Efficient Luxury Car
The 2025 Lexus ES Hybrid is the most fuel-efficient luxury car available, offering 44 MPG Combined. The 2025 Lexus ES is exclusively offered in 300h trim, which is powered by Toyota’s leading hybrid 2.5-liter inline-four powertrain. There are five different trim levels to choose from for the 2025 Lexus ES Hybrid, starting with the $44,835 ES 300h and topping out with the $51,130 ES 300h F Sport Handling.
Fuel Costs And Total Range
According to EPA standards, the 2025 Lexus ES 300h has a total range of 581 miles and has an annual fuel cost of $1,050. The 2025 Lexus ES 300h will save you $2,750 in fuel costs compared to the average new vehicle, which is calculated to achieve 28 MPG Combined. This is based on a mix of 45 percent highway driving and 55 percent city driving, with an annual average of 15,000 miles according to current fuel prices.
The Lexus ES Hybrid Trim That Offers The Most Value
While Lexus offers five different trim levels for the 2025 Lexus ES 300h, there is only one trim we’d select when considering all-out value, and that is the most affordable one, the $44,835 ES 300h. The 2025 Lexus ES 300h offers a stunning luxury experience in its most frugal configuration that would make more than most prospective owners happy. However, if you want to enrich your experience just a bit further, we would select a couple of key available options. The first is the $2,790 Premium Package, because without it, you can’t choose the $1,215 Triple-Beam LED headlamps or the $1,080 Mark Levinson 17-speaker 1,800-watt Surround Sound system. With these options selected, the total price of this particular 2025 Lexus ES 300h would be $49,920. That’s quite a pretty penny, but you can rest assured knowing you will be experiencing one of the finest, high-value luxury vehicles on the market.
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Choosing A Lexus PHEV Or A Lexus Hybrid: Cost Analysis
The only luxury vehicle that is more fuel efficient than the 2025 Lexus ES Hybrid is the 2026 Lexus NX 450h+, which offers 84 MPGe Combined. The 2026 Lexus NX 450h+ offers 37 miles of electric range and 36 MPG when utilizing the gas engine exclusively. This provides about 550 miles of total range with annual fuel/electricity costs of $1,150. If you have been paying attention, you may realize that this means that this plug-in hybrid SUV costs more per year to operate than its hybrid sedan equivalent. Let’s discuss a couple more details related to this specific circumstance.
How PHEV Costs Can Exceed Those Of Standard Hybrid Models
You may assume that because you have a BEV or PHEV, you are automatically saving money because you aren’t spending any money on gas. The reality is that charging your car every day still costs money, and electricity is by no means a cheap commodity, especially in dense, high-population metropolitan areas. We directly compared the operating costs of the 2026 Lexus NX 450h+ and the 2025 Lexus ES 300h to see exactly how much each would cost you on an annual basis in the largest sprawling metropolitan area in the country, Southern California.
The average round-trip commute in Southern California is about 33.2 miles, and if you work five days a week (240 days a year), that results in 7,968 miles of travel a year (does not consider non-commute driving). Since the 2026 Lexus NX 450h+ has a fully electric range of 37 miles, it can accommodate the average SoCal commute exclusively on electric power. If you chose to use electric power exclusively, the charging cost would be $1,006 a year. If you chose to utilize the gas hybrid mode exclusively, your fuel costs would be $1,013 a year. The 2025 Lexus ES 300h, comparatively, costs $829 a year over the same commute distance, a savings of about $180 a year compared to its PHEV counterpart.
Electricity Is Not Cheap; It’s The Opposite
You may still be shocked at the fact that a luxury PHEV compact SUV running exclusively on electric power may cost you more on an annual basis than a luxury hybrid sedan. However, you will soon understand why this is the case. The fact is that PHEV electric efficiency per mile does not trump hybrid gas cost per mile in this case. The 2025 Lexus ES 300h offers 44 MPG Combined, every day, any day, and in any condition or circumstance. That impressive MPG figure is not surpassed by the cost-per-mile ratio of the 2026 Lexus NX 450h+ and its 37-mile electric range. However, the real factor at play here is the cost of electricity, which can turn the tide in favor of either vehicle.
California, unsurprisingly, has the highest average electricity rate in the nation (30.45 cents per kWh), and no other state in the continental U.S. comes even close (Hawaii, a literal island, is the only exception at 36.95 cents per kWh). The closest continental state in regard to average electricity rate is Connecticut (27.04 cents per kWh), which is 11 times smaller in population size when compared to California. For comparison, the U.S. average electricity rate is 15.83 cents per kWh, almost half that of California’s average rate. Thus, for the 2026 Lexus NX 450h+ to offer a better cost-per-mile-ratio than the 2025 Lexus ES 300h, your charging cost must be lower than 26 cents per kWh. So, while the Lexus PHEV would save you money in almost any other state under normal commuting conditions, that isn’t the case in California because of its extremely high electricity rates.
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Fuel-Saving Alternatives To The Lexus ES Hybrid
We both love the $59,105 2026 Lexus NX 450h+ and the $44,835 2025 Lexus ES 300h+. However, once you consider the base price of these two vehicles, you realize you are paying a pretty penny to unlock their amazing fuel-saving capabilities. What if you still want a luxury experience, fuel efficiency, and the lowest entry price available on the market? Well, there is truly only one capable alternative that would manage to tick all the boxes, and that is the 2025 Lexus UX.
The Insane Value That Is The Lexus UX
At $38,035 for the base model 2025 Lexus UX 300h, you won’t find another luxury vehicle that offers more value and fuel efficiency in its segment than this one. From the 2023 model year, the Lexus UX, a compact crossover SUV, is now exclusively available as a hybrid model. The Lexus UX utilizes Toyota’s hybrid 2.0-liter inline-four powertrain that offers an incredible 43 MPG Combined (FWD models). The total mileage range of the 2025 Lexus UX 300h is 456 miles with an annual fuel cost of $1,050.
How The Lexus UX Compares To More Premium Lexus Models
While the value of the 2025 Lexus UX 300h is undeniable, how does it compare to other Lexus models as far as being a luxury vehicle? Well, in that sense, the Lexus UX is a bit of a double-edged sword, because its hyperefficient hybrid powertrain is also the reason it doesn’t feel quite as premium as you might hope.
The fact is that the Lexus UX 300h’s 196-horsepower hybrid inline-four powertrain is barely adequate as far as performance is concerned. For those crazy efficiency numbers (and low entry cost), you are sacrificing any semblance of real performance character normally expected in a luxury vehicle. The Lexus UX, after all, is just a Toyota Corolla Cross wearing a very nice suit. However, if that isn’t a make-or-break factor for you, you will be pleasantly surprised by the impressive overall luxury value that the Lexus UX has to offer.
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Sources: Lexus, Toyota, Fueleconomy.gov, Energy Star, Electric Choice, Southern California Association of Governments, Southern California Edison