An image consulting firm presented a list of 219 names from which Vectre, Verone, Chaparel, Calibre and Alexis were top candidates. While Alexis quickly became the front runner and later morphed to Lexus, the name has been attributed to the combination of the words "luxury" and "elegance." According to Toyota however, the name had no meaning and was just meant to be pleasing and easy to remember. Just prior to the release of the first vehicles, the database service LexisNexis obtained a temporary injunction forbidding the name Lexus from being used as they stated it might cause confusion. Upon reflection, the court lifted the injunction, deciding that most people had never heard of LexisNexis, and those that had, would not in all likelihood confuse a car with a database service.

The flagship LS 400, known as the Toyota Celsior in the Japanese domestic market, had a unique design, sharing no major elements with previous Toyota vehicles, with a new 4.0 L V8 engine. It was widely praised for its quietness, well-appointed interior, fine engine performance, outstanding build quality, and value. (In some markets, it was priced against mid-sized Mercedes-Benz and BMW models, while offering size, performance, and quality comparable to their full-size cars). It was generally regarded as a major shock to the European marques, but was criticized by automobile columnists for anonymous styling and a suspension regarded as too compromising of handling for ride comfort. Nonetheless, the LS 400 won several major motoring awards when released.

These attributes have been maintained in subsequent versions of the LS, including the LS 430, and the range has been expanded with other models (the Toyota Windom-based ES 330, the small, sporty, rear-drive IS 200 and IS 300 (based on the Japanese Domestic Market Toyota Altezza), the Toyota Land Cruiser-based LX 470 SUV, and the GS models, based on the Toyota Aristo). The world's second mass-production hybrid SUV was a Lexus (After the Ford Escape SUV in summer 2004). The SC 300/400 was Lexus' first coupe that made its way to the United States. Subsequently the second generation SC 430 became the first convertible ever to be offered by the company.

Lexus has been the number one selling luxury nameplate in the United States for the past 5 years and of course a very well known and successful brand in the UK.