Lexus' Biggest Problem With The TX 500h Is Wearing A Toyota Badge

Not too long ago, I drove Toyota's newest midsize crossover to fill in the space between its long-running Highlander and the full-size Sequoia, the 2025 Grand Highlander Hybrid. Its mission, as the "Grand" part suggests, was to offer more real room for third-row occupants while maintaining a footprint smaller than Toyota's largest tree in the forest, plus a few more amenities and mechanicals to make this new take on the standard Highlander stand out against the rather small competitive field. 

Of course, Lexus couldn't be left out of the deal, especially since its three-row RX L midsize crossover was discontinued when the fifth-gen 2023 RX was introduced. Thus, the Grand Highlander was sent to finishing school to become the 2024 TX.

And just like its more mainstream cousin, the TX can be had as either a plug-in hybrid, a gas-only affair, or, in my case, a hybrid. Still, is a Lexus-fied Toyota Grand Highlander Hybrid the way, though? After all, a well-equipped Grand Highlander Hybrid MAX Platinum can more or less go toe-to-toe with its luxury cousin, the TX 500h. To help me find out, Lexus sent over a 2025 TX 500h F Sport Performance Luxury AWD in Nightfall Mica, just to see if the Toyota truly did cure me of my Lexus upgraditus.

Lexus keeps things simple with the 2025 TX 500h, making only two trims available for the hybrid version of the TX. That's double what's offered on the TX 550h+ plug-in hybrid, but well short of the seven trims one can choose from the gas-only 2025 TX 350 lineup. Here's what you can expect to pay for the hybrid version of the 2025 TX before the $1,350 destination charge is added in:

• TX 500h F Sport Performance Premium AWD: $70,110
• TX 500h F Sport Performance Luxury AWD: $73,260; $79,853 as-tested, including the $1,350 destination charge

As far as competition goes, the Lexus TX 500h has few to throw hands against. There's the aforementioned Toyota Grand Highlander, the most upscale trim of which starts at $58,775, as well as the performance-oriented Mazda CX-70 PHEV ($54,400 base MSRP) if the hybrid part is most important to you, and CX-90 PHEV ($51,475) if you need those three rows of seats. 

Under the hood of the 2025 TX 500h is the same turbocharged 2.4-liter inline-four used in the Hybrid MAX versions of the Toyota Grand Highlander, though with a smidgen more power. Total horsepower from the hybrid system comes to 366 hp and 406 lb-ft of torque. A six-speed sequential-shift automatic transmission with paddle shifters sends all that power to all four 22-inch alloy wheels (ours were wrapped in Continental CrossContact LX20s, optimized by the tire maker for the needs of hybrids, PHEVs, and EVs alike). 

The F Sport badge brings with it sport-tuned front suspension, consisting of independent MacPherson struts with coil springs, solenoid-actuated shocks, a stabilizer bar, and a performance damper. Out back, a dynamic rear steering system featuring multi-link rear with coils, gas-pressurized shocks, and another stabilizer bar and performance damper help this midsize luxury hybrid crossover glide around the mountain curves. Stopping this machine are a set of 15.7-inch front and 13.3-inch rear vented discs.

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Gliding 'round those curvy mountain switchbacks is one thing, but you won't be gliding by too many gas stations along the way. Combined fuel economy is an EPA-estimated 27 mpg (27 city/28 highway). Thanks mainly to my in-town driving route, the best I could get out of this Lexus hybrid was 21.3 mpg overall. Throw in the fact this hybrid requires premium for its 21.7-gallon fuel tank, and you've got a recipe for some pain at the pump. Then again, if you're shopping for a Lexus, you're probably not too worried about such things.

Both trims of the 2025 TX 500h deliver the tech extravaganza luxury brands are known for, beginning with a 12.3-inch digital gauge cluster behind the wheel, plus a massive 14-inch center touchscreen with a pair of dials for dialing in the temp of the multi-zone climate control, and a tiny button for handling the volume of the base 12-speaker premium stereo system; a 21-speaker Mark Levinson system (like the one my TX 500h had) is available. 

Then there's what's on the steering wheel itself: a pair of trackpads. Yes, the infamous Lexus trackpad has struck back times two, controlling the cruise control (right pad) and audio/info (left pad) functions. Combined with hiding the drive mode controls in the center touchscreen menu (instead of a physical mode button)... let's just say I'd rather have the physical functions on the Grand Highlander over this. Wireless Apple CarPlay and Android Auto, Google Built-In, SiriusXM satellite radio, a 4G Wi-Fi hotspot (with subscription), and wireless device charging are among the list of standard tech features.

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On the safety tech front, Lexus Safety System+ 3.0 includes vehicle exit warning (so you and yours don't get bulldozed by a Tundra), adaptive cruise control, pedestrian detection, automatic high beams, rain-sensing windshield wipers, and intersection assist (so you and yours don't get T-boned by a Tundra). Available features include a digital rearview mirror (so you can see past the heads of the third-row occupants), surround-view camera system, head-up display, front cross-traffic alert (which requires a Drive Connect subscription; a three-year trial is available), and remote park assist.

Much like its Toyota platform-mate, the 2025 TX 500h offers plenty of room for all occupants, though that means six people versus the Grand Highlander's eight. The Lexus has a 50/50-split third-row, plus offers only captain's chairs for the second row. Still, it's more than either the full-size 2025 LX 700h Ultra Luxury (with its lavish four seats) or Overtrail (five seats if the third row is omitted) trims; the rest of the LX 700h lineup offers one more seat, though, as does the gas-only 2025 TX 350 lineup. 

The first and second rows deliver the most legroom in the TX, of course, while the third row's 33.5 inches are more suited to children and pets, especially over long road trips. But at least they'll have quite the view of the blue skies above via the panoramic sunroof. All seats are trimmed in synthetic (Premium trim) or genuine (Luxury trim) leather, with the first and second rows offering heating and ventilation, and there's a heated leather-wrapped steering wheel to keep the driver's hands warm.

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When it comes to hauling around the groceries and big ticket items, with all seat backs in their upright position, 20.2 cubic feet will handle everyday errands. Drop the 50/50-split third-row power-folding seat backs down, and that space opens up to 57.4 cubic feet. Finally, walk around the side to lower and move the second-row seats forward, and there's 97 cubic feet; if that's still not enough, the TX 500h can tow up to 5,000 pounds.

Having already driven the Grand Highlander, I found the TX 500 to be much the same. There was plenty of power to pass by the big rigs passing through I-81 South through my usual test loop between my home and Pulaski County, Virginia, while coming back down the mountain from where I usually take photos, the midsize crossover had no trouble slinging its heft around the bends. That aforementioned rear-wheel steering  probably helped, though I didn't really notice (which, perhaps, is what you'd want from a Lexus: no drama on the road). 

Away from the open road, it was more of the same on the streets of my small town. Pulling into tight parking spots was made easy with the surround-view camera, though the camera button to activate it could stand out a bit more (or be relocated to the windshield wiper stalk, like on the 2026 Honda Passport). I also like the virtual rear view mirror, and its wider view of what was behind me without worrying about the many headrests in my way. And that finely tuned suspension soaked up more than a few bumps and railroad tracks to deliver a comfortable ride no matter where I went.

After a week with the TX 500h I can safely say that, if I had to pick either this or its Grand Highlander platform-mate, I'd pick the Toyota. A fully maxed-out Grand Highlander Hybrid MAX Platinum is still some $10,000 less than the F Sport Premium trim of the TX 500h, yet it holds one more person in its third row, and offers nearly 95% of what the Lexus provides in amenities and mechanicals. Not to mention that audio, drive mode, and cruise control features aren't hiding within a touchscreen or a trackpad. I also got slightly better overall fuel economy in the Toyota (23 mpg) than the Lexus (21 mpg).

Nonetheless, there are those who would like a midsize Lexus hybrid crossover with enough room for two more people, without having to spend the big bucks on an LX 700h where the base Luxury trim starts at a whopping $120,450. That, plus its ability to tow and capacious trunk, should make the TX 500h a good fit on their driveway.