Customers ready for $80K 'Lex-ius'

Lexus Australia says Australia customers are ready to buy an $80,000 midsized hybrid.

Speaking at last week's local launch of the all-new RX350 crossover, Lexus Australia Chief Executive, John Roca, told the Carsales Network the local market's acceptance of hybrid technology and green sensibilities meant the way was clear to successfully market such a vehicle Down Under.

Roca was referring to the company's US-focused HS 250 h. Shown for the first time at the North American International Auto Show in Detroit in January, the HS 250 h will be the fourth Lexus hybrid to go into production when it goes on sale in the USA in the third quarter of 2009.

Despite initial reports to the contrary, the midsized sedan will be built in both left and right-hand drive variants.

"We're still at the stages of initial discussions [about the HS 250 h]," Roca told the Carsales Network last week. 

"We were as surprised as anyone when we found out [in Detroit] it could potentially be built in right-hand drive. Our discussions haven't progressed far, but we're still talking and nobody's saying no," he said.

The HS 250 h leverages established powertrain infrastructure in a unique Lexus package. It is powered by an Atkinson-cycle version of the Camry's four-cylinder 2.4-litre engine and an electric motor/generator coupled with the engine to a continuously variable transmission set-up.

According to Roca, the HS 250 h will positioned at a similar price level to the front-wheel-drive ES350.

"It looks like the HS will sit between IS and GS -- like the ES does in markets such as the USA," he said.

With the IS range kicking off at $56,490 and the cheapest GS $10 short of six figures, that would indicate a pricetag around the $80,000 for the HS. Therefore, would there be a market for such a vehicle, the Carsales Network queried?

"I think for sure there's a market [in Australia] for a car like this," Roca opined.

"We've talked about 'light green' and 'dark green' customers. There are 'dark green' customers that might be reluctant to buy a hybrid car that still has a six or eight-cylinder engine. The HS would address this issue," Roca said.

Roca stressed that there was still no firm decision, nor firm timeline for the HS's introduction into Australia.

"Like we said, we want the car. We believe it would be a worthwhile addition to the line-up," he stated.