Lexus Developing Entry Level 1- Series Hybrid

Lexus probably won’t launch a sub-$30,000 model in the U.S. but that doesn’t mean they aren’t developing a new entry-level model for other markets such as Europe. There, small cars like the Audi A3 and BMW’s 1-series sell in significant numbers, and according to a new report Lexus will have a challenger for its German rivals as early as next year. Toyota exec Tokuichi Uranishi has revealed that Lexus could develop a new entry-level model for Europe to help reach its European sales target of 150,000 vehicles by 2015.

This information was backed last year by Lexus’ Australian chief John Roca. Britain’s Top Gear is also reporting that Lexus will have a concept version of its 1-series rival on display at September’s Frankfurt Motor Show, ahead of a market launch due next year. This new Lexus model will reportedly be a hybrid based on the 2010 Toyota Prius . Designed to compete with Germany’s highly efficient four-cylinder diesel lineup, the new car will be a FWD compact hatchback and be priced less expensively than the current Lexus IS 220D.