While Lexus had pioneered this once unique crossover between the luxury car and the SUV, they were encountering more competition by the third model year. The Acura MDX and Infinity QX4 provided new options in the car/SUV niche. Originally based on the Japanese market Toyota Harrier, the RX would return to Toyota as the Highlander for 2001 in the United States.

The 2001 RX featured several changes. Most notable was the standard skid control system which regulated braking and engine power to maintain sure-footedness in slick conditions. A larger gas tank, water repellent front glass, and minor styling details rounded out the changes. New options included a navigation system, heated seats, and wood steering wheel and shifter.

Drivers who expected the RX to have the capabilities traditionally associated with SUVs were disappointed, and found the vehicle to be a poor value in that respect. However, those expecting a Lexus were not let down. Drivers reported the RX as powerful, smooth, comfortable, and luxurious. The 3.0 Liter V-6 provides 220 hp and 222 lb.-ft. of torque, but the gas mileage is certainly acceptable at 19/24. Common issues included a tight interior, uncomfortable front seats, and poor steering radius (41.3 ft) and responsiveness.