In 1983, the chairman of Toyota convened a meeting of top company executives and posed the question, "Can we create a luxury vehicle to challenge the world's best?". The answer resulted in the setting up of a secret project codenamed F1 ('Flagship' and 'No. 1 vehicle').

The F1 project aimed to develop a luxury car that would expand Toyota's range giving it a product to challenge the likes of BMW and Mercedes in the premium segment of the market. Toyota's market research concluded that a separate brand and sales channel was needed to present its new luxury flagship, and plans were made to develop a new network of dealerships throughout the world. The F1 project eventually became the successful Lexus LS400.

The LS400 made its first appearance in January 1989 at the North American International Auto Show in Detroit. The following September, Lexus vehicles officially went on sale through a network of 73 new Lexus dealerships across the U.S.

Today Lexus is an established luxury brand recognised throughout the world with a growing number of superb models. In more recent years the company has introduced its Hybrid technology to a number of its cars and now offer customers a greener alternative to luxury driving.

Their Hybrid system combines conventional engines and electric motors for increased power, improved fuel efficiency, and lower emissions relative to traditional power units. The GS450h was unveiled in 2006 and in 2007.

In 2005, Lexus unveiled the world's first hybrid SUV, the RX400h and followed that the next year with the GS450h, a performance hybrid saloon with a V6 petrol-electric powertrain and rear-wheel drive. In 2007, Lexus launched the LS600h and LS600h L, both hybrid versions of its LS flagship series.