The IS 300h is the first time Lexus has had a hybrid version of its compact executive car. It uses a 2.5-litre petrol engine and electric motor, which should offer the same combined 217bhp as in the North American market version, which is also higher than the BMW. A conventional IS 250 petrol will also be offered, but fuel efficiency figures have not been released yet.

For Lexus, which has had traditionally retail-biased UK sales, the IS 300h will be a key fleet offering. A spokesperson told Fleet World it was targeting 4,000 sales per year for the IS, almost four times the volume of its predecessor and largely conquests from other brands. Alongside the CT 200h, which has been a large driver of extra volume in the UK, it will be the backbone of the carmaker’s ongoing aspirations to reach 15,000 sales per year by 2015.

Sales begin this summer, and both powertrains will be available in the familiar SE, Luxury, F Sport and Premier trim levels. The new IS is based on the same platform as the latest GS, offering more interior space and a longer wheelbase than its predecessor. Its downsized hybrid drivetrain could also be used in a diesel-rivalling GS, which the carmaker has hinted it is working on.