Can a luxury car really get 44 MPG? This one can

If you enjoy the experience of a luxury car but don’t want to compromise on efficiency, there’s only one brand for you: Lexus. The leading luxury car manufacturer in the US has never been more popular, and it is clear why its success has not yet reached its peak but continues to grow. One of the many reasons why Lexus has and continues to be such a dominant force is that they offer the most fuel efficient luxury car on the market, the 2025 Lexus ES300h.

This hybrid model, along with the 2026 Lexus NX 450h+ (a plug-in hybrid), are by far the best fuel-efficient luxury vehicles on the market today. For the purposes of this article, we are excluding BEVs from consideration because our focus is on fuel-efficient luxury vehicles and not all-electric luxury vehicles. Wondering what makes this hybrid Lexus model so attractive and whether it is the right choice for you? Stick around as we break down the details.

The 2025 Lexus ES Hybrid is the most economical luxury car

The 2025 Lexus ES Hybrid is the most fuel-efficient luxury car available, with a combined rating of 44 MPG. The 2025 Lexus ES is offered exclusively in 300 Hour trim, which is powered by Toyota’s class-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 culminating in 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 570 miles and 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 car, which is expected to get 28 mpg combined. This is based on a mix of 45 percent highway driving and 55 percent city driving, with an annual average of 24,000 kilometers at current fuel prices.

The Lexus ES hybrid version that offers the most value

Although Lexus offers five different trim levels for the 2025 Lexus ES 300h, there’s only one trim we’d select when considering overall value, and that’s the most affordable, the $44,835 ES 300h. The 2025 Lexus ES 300h offers a stunning luxury experience in its most fuel-efficient configuration that would please more than most potential owners. However, if you want to enrich your experience a little further, we select some key options available. The first is the $2,790 Premium Package, because without it you can’t opt ​​for the $1,215 Triple-Beam LED headlights or the $1,080 17-speaker, 1,800-watt Mark Levinson 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 that you’ll experience one of the best, high-quality luxury vehicles on the market.

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 a combined rating of 84 MPGe. The 2026 Lexus NX 450h+ offers an electric range of 37 miles and 36 MPG when using only the gas engine. This gives a total range of approximately 550 miles, with annual fuel/electricity costs of $1,150. If you’ve been paying attention, you might realize that this means this plug-in hybrid SUV’s annual running costs are higher than its hybrid sedan equivalent. Let’s discuss a few more details related to this specific circumstance.

How the cost of PHEV can be higher than standard hybrid models

You can assume that because you have a BEV or PHEV, you automatically save money because you don’t spend money on gas. The reality is that charging your car every day still costs money, and electricity is certainly not a cheap commodity, especially in densely populated urban areas. We directly compared the running 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 nation’s largest sprawling metropolitan area, 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 a trip of 7,968 miles per year (excluding non-commute driving). Because the 2026 Lexus NX 450h+ has an all-electric range of 37 miles, it can handle the average SoCal commute on electric power alone. If you choose to use electric energy only, the charging cost is $1,006 per year. If you choose to use hybrid gas mode only, your fuel costs will be $1,013 per year. The 2025 Lexus ES 300h costs a relative $829 per year over the same travel distance, a savings of approximately $180 per year compared to its PHEV counterpart.

Electricity is not cheap; It’s the opposite

You may still be shocked by the fact that a luxury compact PHEV SUV that runs solely on electricity 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 the electric efficiency per kilometer of the PHEV in this case does not outweigh the hybrid gasoline costs per kilometer. The 2025 Lexus ES 300h offers a combined rating of 44 MPG, every day, every day, in all conditions and conditions. That impressive MPG figure isn’t outdone by the cost per mile of the 2026 Lexus NX 450h+ and its 37-mile electric range. The real factor at play here, however, is the cost of electricity, which could turn the tide in favor of either vehicle.

Unsurprisingly, California has the highest average electricity rate in the country (30.45 cents per kWh), and no other state in the continental US even comes close (Hawaii, literally an island, is the only exception at 36.95 cents per kWh). The closest continental state in terms of average electricity rate is Connecticut (27.04 cents per kWh), which is 11 times smaller in population size compared to California. By comparison, the average electricity rate in the US is 15.83 cents per kWh, almost half the average rate in California. For the 2026 Lexus NX 450h+ to offer a better cost-per-mile ratio than the 2025 Lexus ES 300h, your charging costs 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’s not the case in California due to the extremely high electricity rates.

Fuel-saving alternatives for the Lexus ES Hybrid

We both love the $59,105 2026 Lexus NX 450h+ and the $44,835 2025 Lexus ES 300h+. However, when you consider the base price of these two vehicles, you realize that you’re paying a pretty penny to take advantage of their amazing fuel-saving capabilities. What if you still want a luxurious experience, fuel efficiency and the lowest entry price on the market? Well, there’s really only one capable alternative that could tick all the boxes, and that’s 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 in its segment that offers more value and fuel efficiency than this one. From model year 2023, the Lexus UX, a compact crossover SUV, is now exclusively available as a hybrid model. The Lexus UX uses Toyota’s hybrid 2.0-liter inline-four powertrain that offers an incredible 43 MPG combined (FWD models). The total mileage 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 UX300h There’s no denying it: how does it compare to other Lexus models when it comes to a luxury car? In that sense, the Lexus UX is a bit of a double-edged sword, as its hyper-efficient hybrid powertrain is also the reason it doesn’t feel as premium as you’d hope.

The fact is that the 196 hp hybrid inline-four powertrain of the Lexus UX 300h is barely adequate in terms of performance. For those insane efficiency figures (and low entry costs) you sacrifice any semblance of real performance character normally expected in a luxury car. After all, the Lexus UX is just a Toyota Corolla Cross dressed in a very nice suit. However, if that’s not a make-or-break factor for you, you’ll be pleasantly surprised by the impressive overall luxury value the Lexus UX has to offer.

Sources: Lexus, Toyota, Fueleconomy.gov, Energy Star, Electric Choice, Southern California Association of Government, Southern California Edison