Review of the new Lexus CT200h

Lexus is aiming to gatecrash the small prestige hatch territory dominated by Audi and BMW with an up-market/low emissions five-door hatch using the petrol-electric hybrid powertrain of the Toyota Prius and Auris HSD. It's the first hybrid in this sector and carries the promise of Lexus quality.

Given the hardware and technology at its disposal, it would have been a surprise if Lexus hadn't decided to make a move on the likes of the Audi A3 and BMW 1-series. It's taken on its prestige German rivals in just about every other segment with a persuasive mix of advanced technology, great build, exemplary refinement, plush appointments and an enviable reputation for reliability. All of which should be easily transferable into a smaller, cheaper package.

Lexus stunned the world with its first car 21 years ago. The V8-engined LS400 saloon raised the bar for several luxury car parameters (not least build quality and refinement) at a stroke - a template for future success across an expanding range through the subsequent two decades, bolstered by the pioneering use of hybrid technology.

Applying the formula to its new entry-level model is undoubtedly a bold move that shows promise on paper but is perhaps inevitable given the ready availability of the CTV-controlled 1.8-litre petrol/electric engine from parent brand Toyota's Prius. It's too early to say whether potential buyers will view the CT200h as a posh Prius or a baby sibling to its hybrid-powered executive saloons and limos. There certainly little doubt that the latter scenario is the one Lexus is banking on, citing the Audi A3 and BMW 1-series as principal rivals and, in particular, their penny-pinching diesel variants.

Anyone expecting the CT200h to post higher power and torque outputs than the Prius, as some early rumours suggested, can take some comfort from chief engineer Osamu Sadakata's hint that a 2.0-litre turbo is on the way. But for the time being, the CT gets exactly the same 98bhp 1798cc variable timing four-cylinder engine, synchronous electric motor and regenerative braking as the Toyota. Working in tandem, they deliver 134bhp, but Lexus has tweaked the electronics to smooth the delivery and, in Sport mode, provide a little more shove while, at the same time, sharpening throttle and steering response and reducing the effect of the stability control. As with the Prius, there are three other settings: Normal, Eco and EV (in which guise you can travel on electric power alone at up to 28mph while battery reserves permit).

"Cost of ownership is where the CT200h can really hurt its conventionally-powered rivals.."

Even so, a claimed 0-62mph of 10.3s isn't going to ruffle the feathers of even the weakest turbodiesel opposition and the CVT automatic, although crucial in coordinating the contributions of the petrol and electric motors, is likely to be a turn-off for some. Still, being a 'full' hybrid like the Prius, the Lexus can pull off the same trick of automatically switching to 'stealth mode' and running on battery power for short distances at low speeds. Eco mode softens throttle response and optimises the power consumption of the climate control to preserve fuel. Underpinnings are bespoke Lexus which means double wishbone rear suspension and clever, lateral dampers that are claimed to reduce body vibrations.

More generic than gorgeous, the CT200h is unlikely to turn many heads but is inoffensive enough and well thought out in detail. That said, Lexus isn't renowned for the aesthetic allure of its products and it hasn't stood in the way of the brand's success. Premium small hatches as a breed don't make spaciousness a big priority and the Lexus is certainly no worse than the class norm, though what would be quite a decent luggage capacity is compromised by the battery pack located underneath the rear seats and boot floor. Leg and headroom dimensions in the back look adequate and the small of stature shouldn't feel cramped, though the CT's high waistline means the view out won't be great for anyone.

The good news is that, when it comes to perceived quality - the standard of the paintwork, fixtures and fittings, the sense of solidity and the tactility of the cabin materials - the Lexus should be able to stand toe-to-toe with Audi and BMW and maybe even force them to look to their laurels.

Plenty of kit is a foundation stone of the Lexus ethos, so it's a little surprising that only the topline Premium models have satnav as standard. To be fair though, it's quite some satnav, boasting touchscreen controls, a display with excellent clarity and graphics and a level of sophistication few other line-fit systems can match. In other areas, though, the lesser CT200h variants aren't found wanting. There are three trim levels to choose from: SE-I, SE-L and SE-L Premier. Lexus reckons that it would cost over £1,700 to specify a comparable BMW 118d SE to the same level as a CT200h SE-I.

All the models come with alloys, climate control, privacy glass and Bluetooth and, to that, the mid-spec variants add leather seats. As well as the excellent touch-screen satnav, Premium models get electric seat adjustment and a magnificently OTT 13-speaker Mark Levinson hi-fi system. The airbag count is almost as impressive at eight, including knee protection for driver and passengers and it goes without saying that the CT has the full complement of electronic stability and traction controls.

Cost of ownership is where the CT200h can really hurt its conventionally-powered rivals. Its hybrid technology might be fairly conventional - we're on the cusp of a transition to plug-in lithium ion batteries - but that can't detract from CO2 emissions of just 96g/km and the running cost benefits that go with it: rock bottom road fund licence and company car tax. A 10% benefit-in-kind company car tax rating compares with 13% for a BMW 118d or an Audi A3 2.0 TDI - or 18% if you properly match this Lexus by choosing these German rivals in their automatic guises.

Take the official combined consumption figure of 68.9mpg with a pinch of salt - achievable but not in the real world - and you won't be disappointed with returns at least the equal of the best diesel competition. Throw in congestion charge exemption, reasonably-priced servicing and what's almost certain to be a snail-like rate of depreciation though, and the running cost package looks compelling.

Given the global success of the Toyota Prius, it seems like a no brainer that the CT200h will do well enough for Lexus. But it is a car that relies heavily on its low running costs and brand reputation to furnish its appeal. You won't get the kind of performance you'd expect from a brawny turbodiesel rival but you will get what many will feel to be an altogether classier package. If nothing else, this car should prove that a tight budget and saintly eco credentials aren't incompatible with distinctly posh trappings.

TOP 4 CT DEALS

The results below show the top CT deals on buyacar

Lexus CT 200h 1.8 SE-L Premier 5dr CVT Auto hatchback
Price £29,776 Read CT Reviews	Save £1,210
Lexus CT 200h 1.8 SE-L 5dr CVT Auto hatchback
Price £21,990 Read CT Reviews	Save £3,696
Lexus CT 200h 1.8 SE-I 5dr CVT Auto hatchback
Price £17,990 Read CT Reviews	Save £5,796
Lexus CT 200h 1.8 F-Sport 5dr CVT Auto hatchback
Price £25,990 Read CT Reviews	Save £1,896
VIEW MORE DISCOUNT CT DEALS