The gap between luxury and mainstream cars may be narrowing, thanks to the rise of electric vehicles and advanced technology becoming standard even in entry-level models. Yet, many buyers still value the prestige, performance, and premium features that come with luxury vehicles—and are willing to pay a premium for them. This distinction remains strong enough that luxury brands are ranked separately in customer satisfaction studies.
In the 2025 American Customer Satisfaction Index (ACSI) Automobile Study, Toyota-owned Lexus emerged as the top-ranked luxury automaker, climbing two spots from the previous year to surpass both Mercedes-Benz and Tesla. Analysts attribute much of this success to Lexus’ extensive lineup of hybrid vehicles, which continue to outperform fully electric models in customer satisfaction surveys.
Hybrid Powertrains Drive Satisfaction Scores
ACSI surveyed nearly 10,000 vehicle owners between 2024 and 2025, evaluating factors such as driving performance, efficiency, comfort, reliability, and resale value. The 2025 study also introduced two new metrics: total driving range on a full tank or charge, and expected resale value.
Lexus achieved an overall score of 87 out of 100 among luxury brands, five points higher than second-place Mercedes-Benz. Hybrid models played a pivotal role in this success, with vehicles like the Lexus RX 500h crossover leading the way. Across all luxury brands, hybrids earned the highest satisfaction score at 83, followed by gasoline vehicles at 80, and electric vehicles at 78. While Lexus has started offering electric vehicles, the company remains heavily focused on hybrids—a strategy that appears to resonate with consumers.
Challenges for European Luxury EVs
Despite strong scores for Lexus, the luxury segment as a whole saw a slight decline in customer satisfaction in 2025, largely due to challenges faced by electric vehicles from brands like Audi and BMW. According to ACSI, driver frustration with these European EVs not only affected individual brand scores but also contributed to lower satisfaction across the segment.
The study’s new metric for real-world driving range further highlights the advantage of hybrids. Luxury hybrid vehicles scored 76 in range satisfaction, compared to 74 for gasoline models and 71 for electric vehicles, reflecting the ongoing consumer preference for reliable and versatile hybrid technology.
Looking Ahead
With EV sales trending downward in the U.S., brands that have heavily invested in electric luxury models may regain footing if hybrid and gasoline vehicles capture a larger share of sales. For now, however, Lexus maintains a clear lead in customer satisfaction. Among mass-market vehicles, Japanese automakers also continued to dominate, claiming top positions in ACSI’s broader 2025 rankings.
