In an unexpected twist that has automotive enthusiasts talking, Lexus has announced that its 2026 Lexus RZ Electric SUV will feature an industry-first simulated manual transmission system. This bold move challenges the conventional wisdom that electric vehicles must abandon the tactile, engaging experience of shifting gears that many driving purists have mourned since the EV revolution began.
The announcement comes as Lexus seeks to differentiate itself in an increasingly crowded luxury electric SUV market, where many vehicles are beginning to share similar performance metrics and range capabilities. By introducing this innovative feature, Lexus is making a clear statement: the future of electric driving doesn’t have to sacrifice the visceral connection that traditional driving enthusiasts crave.
The Technology Behind the Shift
The system, which Lexus has dubbed “Dynamic Gear Simulation” (DGS), doesn’t involve actual mechanical gears—electric motors fundamentally don’t require multi-speed transmissions like internal combustion engines do. Instead, the DGS system uses a combination of sophisticated software algorithms, haptic feedback, and sound engineering to create what the company describes as “an authentic manual driving experience without the efficiency penalties.”
According to chief engineer Takashi Watanabe, who spoke with me during a preview event in Tokyo last month, the system works by modulating the power delivery from the electric motors in a way that mimics the torque curves and power bands of a traditional combustion engine.
“We spent thousands of hours analyzing the subtle nuances of how a manual transmission feels—the resistance when pushing the clutch, the slight notchiness when finding each gear, even the momentary reduction in power during shifts,” Watanabe explained. “Then we recreated these sensations using our electric architecture.”
The shifter itself is physically connected to nothing mechanical—it’s essentially an elaborate controller that sends signals to the vehicle’s computers. Yet in my brief hands-on demonstration, the weighted feel of the gear lever and the precision of its movement through the H-pattern was remarkably convincing.
Perhaps most impressive is the optional clutch pedal, which provides progressive resistance as you press it, thanks to an advanced electrohydraulic system. When you “miss a shift” or “stall,” the vehicle provides appropriate feedback, though you can easily restart and continue without the actual inconvenience of a true stall.
Driving Experience: Nostalgia Meets Futurism
During a controlled test drive on Lexus’s private track outside Nagoya, I had the opportunity to experience the system firsthand in a pre-production model. The RZ’s base dual-motor setup produces 308 horsepower and 321 lb-ft of torque—modest figures in today’s high-performance EV landscape, but the simulated manual transmission transforms how that power feels.
With the DGS system engaged, the RZ can be configured to simulate different transmission types—from a tight 6-speed sports car gearbox to a more relaxed 5-speed cruiser setup. There’s even a simulated “vintage” mode that mimics the wide-ratio 4-speed transmissions common in classic sports cars, complete with period-appropriate sound profiles.
Each “gear” limits the motor’s output in a way that creates distinct power bands, requiring shifts at appropriate moments for optimal acceleration. The vehicle won’t damage itself if you forget to shift—unlike a traditional manual—but the performance benefits of shifting at the right time are noticeable.
What struck me most was how the experience engaged driving muscles and instincts that have been lying dormant since I switched to an EV three years ago. There’s something deeply satisfying about nailing a perfect downshift before entering a corner, even if it’s simulated. The system adds a layer of involvement that many drivers miss in electric vehicles.
Industry veteran and driving instructor Michelle Rodriguez, who was also present at the event, noted that the system could serve an educational purpose as well: “As manual transmissions disappear from our roads, this could be a way for new generations to understand the fundamentals of performance driving without the learning curve of a traditional clutch.”
Customization: Your Car, Your Shift Experience
Lexus engineers have built extensive customization into the DGS system. Drivers can adjust nearly every aspect of the simulated shifting experience through the vehicle’s infotainment system, including:
- Shift resistance (how much force is required to change gears)
- Clutch weight and engagement point
- Simulated rev-matching assistance
- Shift sound profiles (from subtle to pronounced)
- Simulated transmission types (4-speed through 7-speed configurations)
- Vibration feedback intensity through the seat and shifter
The system even offers a “progressive learning” mode that gradually reduces assistance as you become more proficient, helping novice manual drivers build skill without the frustration of constant stalling.
Perhaps most intriguing is the “heritage” menu, which allows drivers to select simulated transmissions modeled after iconic Lexus and Toyota vehicles from the past—including the original IS300 with its inline-six engine, the V10-powered LFA supercar, and even the legendary AE86 from the 1980s.
Performance and Efficiency Trade-offs
Engaging the DGS system does come with some compromises. When using the simulated manual mode, the RZ’s estimated range drops by approximately 5-8%, according to Lexus engineers. This is primarily because the artificial power steps aren’t as efficient as the standard continuously variable power delivery that electric motors naturally provide.
However, the system includes a one-touch override that instantly returns the vehicle to its most efficient driving mode when maximum range is needed. Additionally, the vehicle automatically suggests switching to standard mode when the battery level falls below 20%.
In terms of acceleration, the standard automatic mode still provides the quickest 0-60 mph time of approximately 5.6 seconds. With the manual mode engaged, that time increases slightly to about 5.9 seconds—assuming perfect shifts. For most drivers, the engagement factor will easily offset this minor performance difference.
Market Position and Competition
The 2026 RZ with DGS technology represents a fascinating strategic move for Lexus. As the electric vehicle market matures, manufacturers are searching for ways to differentiate their offerings beyond the usual metrics of range and acceleration.
By appealing to driving enthusiasts who have been reluctant to abandon internal combustion engines, Lexus is targeting a specific but influential demographic. These are often the vocal car lovers whose opinions shape broader market perceptions.
The pricing strategy reflects this positioning, with the DGS system expected to command a premium of approximately $3,500 over the standard RZ model when it hits showrooms in early 2026. While not inexpensive, this places it in line with other premium performance packages in the luxury SUV segment.
Currently, no other manufacturer offers anything similar in production vehicles, though several have explored comparable concepts. Hyundai’s performance division showed a prototype EV with a manual-like experience in 2023, and Porsche has reportedly been developing its own version for future electric sports cars.
Lexus’s advantage is bringing this technology to market first, establishing itself as an innovator rather than a follower—a position the brand has struggled to claim in the EV space thus far.
Critical Reception and Potential Impact
Initial reaction from the automotive press has been cautiously positive, with most reviewers acknowledging the system’s impressive execution while questioning its long-term appeal. Some traditional publications have dismissed it as a gimmick, while enthusiast outlets have generally been more receptive.
“It’s solving a problem that doesn’t technically exist, but it’s solving it extraordinarily well,” noted veteran auto journalist Chris Harris after his test drive. “Whether this becomes a must-have feature or a footnote in automotive history will depend entirely on how the market responds.”
The bigger question is whether features like this represent the future of performance EVs or merely a transitional technology as drivers gradually adapt to new ways of experiencing automotive enjoyment. Either way, it demonstrates a thoughtful approach to preserving driving engagement in the electric era.
The Broader RZ Package
While the DGS system is unquestionably the headline feature, the 2026 RZ has received numerous other updates that deserve attention. The revised exterior styling is more aggressive than the current model, with sharper lines and a more distinctive implementation of the controversial Lexus spindle grille concept.
Inside, the cabin features Lexus’s next-generation interface, which thankfully returns physical controls for climate and core vehicle functions after customer feedback about the current model’s over-reliance on touchscreens. Materials throughout the interior have been upgraded, with a focus on sustainable options including bamboo-based composites and recycled fabrics.
Battery capacity has increased approximately 12% over the current model, pushing estimated range to around 265 miles in standard form—competitive, though still not class-leading. Charging capabilities have improved more dramatically, with the new 800-volt architecture enabling 10-80% charging in approximately 22 minutes at compatible DC fast chargers.
The suspension system has been thoroughly revised as well, with adaptive dampers now standard across the range and an optional air suspension available on higher trim levels. Combined with the rear-wheel steering system, these changes aim to deliver a driving experience that balances the requirements of comfort and handling more effectively than the current model.
A Bold Vision for Enthusiast-Focused EVs
The 2026 Lexus RZ with Dynamic Gear Simulation technology represents one of the most interesting efforts yet to bridge the gap between automotive tradition and an electric future. By acknowledging and addressing the aspects of driving that enthusiasts fear losing in the transition to electric power, Lexus is taking a meaningful step toward making EVs more appealing to a broader audience.
Whether the simulated manual transmission concept catches on industry-wide or remains a niche feature unique to Lexus, it demonstrates a commendable commitment to preserving the joy of driving in an era of rapid technological change.
As someone who has witnessed the evolution of automotive technology over decades of reporting, I find it refreshing to see this level of innovation focused not just on practical considerations like efficiency and convenience, but on the emotional connection between driver and machine.
The 2026 Lexus RZ doesn’t arrive in showrooms until early next year, but based on my initial experiences with the pre-production model, it’s already clear that it will give enthusiasts something substantive to think about as they consider their electric future.
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