Lexus sets sights on BMW 1 Series and Audi A3

Murmurings of a baby Lexus to compete with the BMW 1 Series and Audi A3 have been circulating for well over a year, and their validity has now been reiterated by the marque's European boss, Tadashi Arami.

Arashi recently told German media that Lexus needed to broaden its range downwards via a sub-IS model to not only help the brand meet tough Euro emissions targets, but also to fuel its sales growth targets.

Lexus currently sells about half a million cars globally, but the aim is to double that figure over the next few years (a precise timeframe for this lofty target hasn't been disclosed).

The proposed 'baby' Lexus would be positioned below the IS, the brand's current entry-level model, and it would be pitched strongly at the Euro market, with a view to growing annual sales in the continent to 150,000 units by 2015.

Lexus has thus far revealed no technical details about its upcoming compact offering, and it's not yet known whether it will be spun off an existing Toyota platform or whether it will be underpinned by new architecture.

Lexus is associated primarily with rear-wheel-drive vehicles (the ES 350 is the only front-drive sedan offered by the brand), but Lexus Australia boss John Roca last year told the Carsales network the newcomer could well be a front-driver.

"I don't think it's necessary [to use rear-wheel drive]. When you go to that size vehicle, I think the market would accept either. It could be front-drive or all-wheel drive -- we believe the market would accept both," Roca told Carsales.

The sub-IS model is expected to be sold alongside a dedicated hybrid Lexus model (in the same vein as the Toyota Prius), and the latter is expected to debut at January's Detroit motor show.

Overseas reports suggest the hybrid will feature a 2.0- or 2.5-litre four-cylinder engine and a conventional nickel-hydride battery.

In the shorter term, Lexus's push to diversify its line-up will gain impetus from the launch of the IS250C (for Convertible), which debuted at the recent Paris motor show.

Also in the pipeline are believed to be 'F' variants of the GS and LS, which will follow in the wheeltracks of the recently launched IS-F. And, as per the latter, these are expected to significantly undercut their Merc AMG and BMW M counterparts on price.

To comment on this article click here