Lexus ES Faces Sales Slump, 2027 Price Hike Won't Fix It

The Lexus ES has long fought the reputation of being a fancy Camry, and the redesigned 2026 model finally shook that off with sharp styling, a tech-heavy cabin, and hybrid or electric powertrains. But after raising prices sharply for the new generation, Lexus is seeing a major sales drop, and the small price increase for 2027 likely won't turn things around.

For 2027, the ES gets modest price bumps across the lineup, ranging from $105 to $110 over the 2026 model, before a $1,395 destination fee. The cheapest option is the ES 350e Premium at $47,610, while the top ES 500e AWD Luxury hits $59,010. Hybrid versions cost about $2,195 more than the base EV.

The problem is sales. In 2025, the ES sold 39,926 units in the US, beating the BMW 3 Series by about 7,000. But most of those were the old model. For the first half of 2026, Lexus reported just 3,896 ES sales, an 80% drop from the same period last year. The new ES, imported from Japan, starts about $5,500 higher than before, and Lexus dropped gas-only engines, leaving only hybrids and EVs.

EV demand has grown slower than expected, and some automakers have delayed EV plans.

The ES 350e makes 221 horsepower with a single front motor, while the ES 500e AWD adds a rear motor for 338 hp total. EPA range is up to 307 miles for the 350e and 276 miles for the 500e AWD, both with 19-inch wheels. 5-liter hybrid system with 244 hp. 0-inch touchscreen, and wireless phone charging.

Higher trims add a Mark Levinson audio system, massaging seats, and a panoramic roof.

Lexus hopes sales will recover as more new ES models reach dealers and buyers get used to the hybrid and EV lineup. But the automaker should be careful about pushing prices higher, or the rebound could stall before it starts.