Lexus has unveiled its all-new CT200h model - a hybrid-only hatchback to take on the Audi A3 and BMW 1 Series in the company car market.
Due to go on sale in the UK late this year, the new five-door Lexus borrows its petrol/electric drivetrain from sister brand Toyota's Prius.
This means a 1.8-litre petrol engine allied to an electric motor, the latter giving the Lexus the potential to be a zero-emission vehicle as it will run purely as an electric car for just over a mile at speeds of up to 28mph.
There will also be the choice of four driving modes, with Eco and Normal aimed at efficiency, Sport aiming for performance and Comfort finding a middle ground.
Lexus has yet to reveal pricing, emissions and fuel economy data, but as the CT200h runs the same engine as the Prius, and is roughly the same size, expect CO2 emissions to be under 100g/km, fuel economy to top 70mpg and pricing to start at around £22,000.
As a result, the new Lexus should qualify for the lowest 10% benefit-in-kind tax band for the next three years, escaping the change in the way hybrids are treated for company car tax as revealed in our exclusive report. Click here for more