Serving as Lexus's entry-level sedan from 2005 until production ended in 2013, Toyota manufactured the XE20 at the facility in Tahara, Aichi, and the Kyushu factory in Miyawaka, Fukuoka (until 2012).

[3] The new IS design featured sleeker, coupé-like contours, a fastback profile, and a repeated arrowhead motif in the front fascia and side windows based on the Japanese concept of kirikaeshi, referring to angular movements.

The second generation IS interior features leather seats, lightsaber-like electroluminescent instrument display lighting and LED interior lighting accents, 10-way (including lumbar) driver and front passenger power seats, and the choice of faux-metallic or optional Bird's Eye Maple wood grain trim made by Yamaha piano craftsmen from sustainable plantations.

[5] The interior design also derived elements from Japanese concepts, including hazushi, where an object retains individuality while being part of a large whole, as typified in side air vents.

National Highway Traffic Safety Administration (NHTSA) crash test results in 2008 rated the IS the maximum five stars in the Side Driver and Rollover categories, and four stars in the Frontal Driver, Frontal Passenger, and Side Rear Passenger categories.

[10] For the IS 250, IS 350, and IS F, engines feature the manufacturer's D-4S direct injection system; these models are ULEV-II emission certified in the United States by the California Air Resources Board.

Technical features on the second generation Lexus IS further include rain-sensing wipers, Intuitive Park Assist (IPA), bi-xenon headlamps, Adaptive Front-lighting System (AFS), and Dynamic Radar Cruise Control.

Lexus' SmartAccess keyless entry with push-button start is a standard feature along with a memory system that can recall driver's seat, side mirror, and steering positions.

[16] Some reviewers noted the second generation models as Lexus' first foray into the sport compact market that compared fairly well with its German competitors.

However, some criticisms were that its steering was not as communicative as that of some rivals,[17] the rear seat legroom (while improved over the first generation) was still tight, and that the six-speed manual was only available on the IS 250.

Introduced to Chinese and Middle Eastern markets in 2006, the IS 300 (GSE22) was tailored to the fuel requirements of those regions, with a 3.0 L 3GR-FE V6 engine (without direct injection), 228 hp (170 kW), and rear wheel drive.

The IS convertible features a three-piece aluminum hardtop that can retract in 21 seconds, a roof-brake mechanism slows panels as they close and near the windshield.

In 2010, coinciding with the second IS line refresh, the IS 220d was replaced with the more efficient IS 200d, whose improved consumption figures were due to engine retuning.

[23][24][25] In early 2004, just after the final XE20 design had been frozen for production, Lexus engineer Yukihiko Yaguchi, assembled a small team and on a limited budget began work on a higher performance IS.

In late 2005, test mules were also spotted on the Nürburgring that were made using body panels from Toyota Crown Royals that were shortened by cutting out sections of the roof and rear doors.

[29][30][note 1] At the North American International Auto Show on 8 January 2007, the new IS F sedan was debuted to the public along with the LF-A supercar concept.

[32] The hood features a bulged appearance, with sharper curve than the standard IS,[33] due to the added space needed to contain the 5.0 L V8 engine.

The interior features a four-passenger cabin with braided aluminum panels, steering wheel paddle shifters, and F marque emblems.

The 8-speed transmission also improves fuel economy,[40] with lower overall consumption than BMW, Mercedes, and Audi rivals,[38][40] and avoidance of the U.S. Gas Guzzler Tax.

The drivetrain is linked to a new sport version of Lexus' electronic stability control system (Vehicle Dynamics Integrated Management, or VDIM, featuring three distinct on-off modes).

[47] An interior update included the addition of the Sport button to the steering wheel[48] and a redesign of the gauge cluster featuring a large central tachometer similar to the Lexus LFA.

[49] Aftermarket tuners, such as Wald International[50] and FiveAxis, have produced special IS F models, which have been part of the manufacturer's auto show exhibits.

[54] The vehicle also featured additional aero parts, and a separate bright orange color scheme, increased engine power to 428 horsepower (319 kW).

[56] At the 2007 SEMA show, Lexus had a formal presence at the aftermarket convention for the first time, and launched a line of "F-Sport" parts and accessories for the IS 250/350.

[57][58] The F-Sport line, including performance and accessory upgrades such as big brake kits, shocks, lowering springs, sway bars, chassis brace, light weight wheels, air intake, exhaust, engine cover, floor mats, shift knobs and also clutch for manual drive, was later expanded to the full IS lineup.

The IS "Sunrise" model included a multi-tone interior with contrast seat leather hues of white, blue, and gray.

[71] The Project Bandoh WedsSport IS 350, driven by Manabu Orido and Tatsuya Kataoka, won both driver and team title in the GT300 class that season.

[75] In Gazoo's win at the DMV Grenzlandrennen VLN race on 29 August 2009,[75] Kazunori Yamauchi, the developer of Gran Turismo series who had little experience in actual motorsport, was also one of their drivers,[76] along with Peter Lyon and Hideshi Matsuda.

[96] In November 2009, the Lexus IS F was named Best New Sports / Performance Car over CDN$50,000 for the year by the Automobile Journalists Association of Canada (AJAC).

[103] The software incorporates artificial intelligence modeling of competing vehicles, and its physics engine simulates actual driving conditions.