Lexus has canceled its plans for a successor to the venerable IS. According to the German-language news outlet Automobilwoche, the next-generation compact sport sedan was supposed to switch to an all-electric powertrain layout inspired by the LF-ZC concept from 2023, but changing market conditions have led the Japanese luxury automaker to revise its plans, potentially leaving the recently updated IS in production for another few years despite its already advanced age. Slow EV Sales Kill Another Sedan The new IS was supposed to take the form of a smallish midsize four-door that would slot in below the gas-electric hybrid and full-EV Lexus ES, with more evocative styling and a greater emphasis on performance. The edgy LF-ZC concept was reportedly a pretty close match for the vehicle that Lexus was developing, with its slightly cab-forward stance and expansive wheelbase giving it proportions not unlike those of the 2027 BMW i3 EV. However, according to Automobilwoche, changing consumer tastes in Lexus' biggest market have put the electric IS on hold indefinitely.LexusIn the US, where Lexus sells 46.3 percent of its automobiles, EV sales are growing a bit stagnant. Tax incentives on new EV purchases dried up last year, and the surge of tech-curious early adopters from the previous decade has ebbed without everyday customers picking up the slack. As a result, Lexus decided to focus its all-electric efforts on existing products like the new ES luxury sedan and RZ midsize crossover, as well as the forthcoming three-row TZ.We routinely and continuously review and evaluate our product plans to achieve the optimal strategy, including the consolidation and reorganization of projects.– Lexus Official StatementStill, Automobilwoche reports that Lexus will forge ahead with some of the technologies that were slated for the LF-ZC's production car followup. That includes high-pressure gigacasting manufacturing techniques to improve body rigidity and reduce weight, as well as continuing research into solid-state batteries to make EVs more efficient and improve their long-term reliability and range. Consumers could expect to see a vehicle with those advancements within a few years, perhaps in time for a mid-cycle update of the recently launched Lexus ES or a full redesign of the RZ, which has been on the market since 2023. The Small Lexus Sedan That Could With the demise of the all-electric IS replacement, the current-generation sedan's future is in question. The architecture that lives under the IS dates back to the 2014 model year, with a big facelift in 2021 and another this year helping keep the aging four-door current. Still, the entry-level Lexus sedan isn't really competitive with the likes of its BMW and Mercedes-Benz competition, and with no EV variant on the horizon, the IS will cede even more of the compact luxury segment to the aforementioned i3 and the all-electric C-Class, both slated to arrive for the 2027 model year. As a result, we're not sure how much longer we can expect to see the sporty little IS at Lexus dealers. Representatives from the automaker woudn't commit to anything specific, only saying that Lexus and its parent company Toyota were capable of responding swiftly to changing market conditions and customer expectations. Whether that capability amounts to a full redesign, another facelift, or a complete discontinuation of the IS family, we're not sure.