RX hybrid gets price break under LCT exemption

Lexus' new RX 450h hybrid SUV hits the market today priced from under $90,000 -- a first for a Lexus hybrid. The cheapest of three models offered across the RX 450h line-up, the $89,900 RX 450h Prestige breaks the $90K barrier thanks to fuel-economy related exemptions to the Luxury Car Tax (LCT).

Under the revised tax regime implemented earlier this year, vehicles that return a combined fuel economy figure of under 7.0L/100km are exempted from LCT up to a sum of $75,000. Though many diesel vehicles have benefitted from the exemption, Lexus says the RX 450h is the first hybrid vehicle to get the discount -- worth more than $4000.

The new RX 450h returns a combined fuel economy figure of 6.4L/100km. Under the bonnet of the RX350-based vehicle is a new 3.5-litre V6 petrol engine and electric motor/CVT transmission with a combined output of around 220kW. The engine differs from that used in the RX350 (more here) by virtue of the fact it is an Atkinson cycle engine.

So-called Atkinson cycle powerplants have lower compression ratios than conventional engines but their cam timing maximises the use of combustion energy by keeping the exhaust valves closed until the very end of the expansion stroke. Though they produce comparatively less power than conventionally timed engines, their emissions are lower. In Lexus and Toyota hybrids any power/torque shortfall is addressed via the electric side of the powertrain.

The outgoing RX400h was offered as a single model. In a major departure for Lexus' one-variant hybrid strategy, the RX450h offers three.

As well as the 'entry-level' Prestige variant, the new Lexus hybrid SUV will be also be available in Sports and Sports Luxury grades priced from $96,900 and $107,900 respectively. The above prices do not include dealer and government charges.

Lexus says the midrange Sports model "contains more features and specification than the outgoing Sports Luxury model".

The Toyota-owned prestige brand is making a significant fuss over the fact the new RX450h "significantly" undercuts "similarly powered and specified diesel rivals".

Lexus Australia Chief Executive John Roca claims that the "pricing structure reflects the popularity of hybrid technology".

"With the first-generation RX hybrid we tested the waters. Today, more consumers want hybrid vehicles and we've positioned RX 450h according to that growing demand," Roca said on the occasion of the car's local launch today.

"It makes complete sense that RX qualifies for an LCT exemption, as its C02 figures alone are something that even diesel powered vehicles cannot achieve using the same amount of fuel," said Roca.

Look out for more launch news from Lexus and our local review of the new RX450h soon.

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