When Toyota introduced the Lexus SLV (Sport Luxury Vehicle) concept in the late 1990s, the idea of a car-based luxury SUV was unconventional. At the time, SUVs were either rugged, truck-based models or fancy full-size behemoths like the Range Rover. A unibody, car-like luxury SUV was a new approach. Then came the Lexus RX 300 in 1998…and it totally changed the game.

The RX 300 was based on the Toyota Camry platform but offered the elevated ride height and all-wheel-drive capabilities of an SUV. It combined the comfort of a sedan with the practicality of an SUV. Lexus marketed it as a “luxury crossover,” a term that was virtually unheard of at the time. Consumers took notice. The RX 300 quickly became a bestseller, and by the early 2000s, it dominated the luxury SUV segment.

Why did the RX 300 succeed? The answer lies in timing and execution. 

By the late 1990s, American buyers wanted SUVs but disliked their rough ride, poor fuel economy, and truck-like handling. The RX solved these problems. It offered a smooth ride, better fuel efficiency, and a refined interior. Lexus also built its reputation on quality and reliability, making the RX even more appealing.

The success of the RX 300 didn’t just validate Toyota’s gamble. It changed the industry. The luxury crossover segment exploded in the 2000s. Competitors scrambled to create their own versions. Following the RX 300, BMW introduced the X5 in 1999, Mercedes-Benz launched the M-Class (which debuted in 1997 but evolved into more of a crossover competitor), and Acura followed with the MDX in 2000. Volvo entered the space with the XC90 in 2002, and Audi joined the trend with the Q7 in 2005. Today, nearly every luxury automaker offers multiple crossover models.

Even after two decades, the Lexus RX remains a top seller

It continues to set the standard for luxury crossovers, balancing comfort, technology, and reliability. The original RX 300 is now recognized as one of the most influential vehicles in modern automotive history.