Lexus CT 200h: Luxury Brand Making Headway with First Sporty Hybrid Hatchback

Lexus Enters a New Segment

Since hitting the market in the late eighties, Lexus has been known for manufacturing well-built, luxurious, premium-class vehicles. But they haven’t been exciting to drive, specifically their recent slew of hybrids.

However, Lexus is hoping to infuse some energy and excitement into the maturing brand, offering the CT 200h, the brand’s first sporty compact hatchback hybrid, as the brand’s new entry-level vehicle, while offering a 500-horsepower supercar, the LFA, at the top-end of the brand.

Unlike the $375,000 limited-edition LFA, the CT 200h is expected to be in reach of most customers, specifically those seeking a sporty driving hatchback hybrid. The all-new CT 200h, which stands for Compact Touring, will become the brand’s fifth hybrid and first hatchback to join the Lexus line up. In order to experience or purchase the CT 200h one will have to wait until March 1, 2011, that’s when the sporty compact is expected to arrive in showrooms around the country. 

Pricing And the Competition

The luxury brand is literally driving into unchartered territory, no pun intended, with the compact premium segment. Currently, this segment accounts for about 1,500 new-vehicle sales per month. Lexus is aiming for 1,000 new-vehicle sales with their new luxury sports compact, the CT 200h. In true Lexus tradition, the Asian-based automaker plans on both expanding and dominating this segment with their new entry-level vehicle.

The Mazda3 is in the background of the CT 200h. Any similarities?

 Based upon our initial assessment from reviewing the vehicle on the tree-lined streets of West Palm Beach Florida, we believe Lexus can achieve their goal. Not only does this vehicle offer a youthful swagger, with its look-a-like Mazda 3 hatchback exterior design, it should attract a new demographic of buyers just as the four-door IS did a few years ago. Besides Lexus, there isn’t an automaker today building a sporty, but affordable premium-class hybrid. Lexus closes competitor is Audi’s A3, which is available as a fuel-efficient diesel compact wagon.

The CT 200h is parked in front of the Mazda3.

 With the all-new CT 200h, Lexus believes they’ve answered the critics question by combing the best of everything in an affordable package, while also providing class-leading fuel-economy. Lexus is targeting Audi’s A3 TDI (turbo charged diesel injection), which starts out at $31,000… about the same price point the CT 200h is shooting for, according to Lexus officials. (The actual pricing of the CT 200h will be announced in the first quarter of 2011). And this will be Lexus’ lowest-priced vehicle.

Estimated Fuel-Economy and Driving Dynamics

While the Audi A3 four-door clean-diesel wagon is capable of cranking out 200 horses and garnering a combined 34 miles per gallon, according to fuleeconomy.gov, the all-new Lexus is expected to offer class-leading fuel-economy, especially since it’s a hybrid. In fact, the luxury brand is estimating that their sporty new hatchback should achieve a combined 42 miles per gallon, with its electric/gas engine, which is expected to put out a total system output of 134 horses.

Although the A3’s turbo pumps out more horses, the Lexus is outfitted in a sportier package and it’s available in four driving modes: EV (electric vehicle), Economy, Normal and Sport. Unlike some other Lexus vehicles equipped with a variety of driving modes, we could actually tell the difference in the driving dynamics of the vehicle as we worked our way through the different driving modes, especially at highway speeds.

During highway driving, we found that placing the CT 200h in sport mode gave us the optimum driving experience. In sport mode, the engine revs are held higher, and throttle and Electric Power Steering (EPS) settings are modified to give a faster response to driver inputs. Yes, this driving mode gives the CT 200h the juice needed to transform from just being another boring, uneventful fuel-efficient hybrid. 

Standard Features and Options

Lexus new five-door hatchback is available in a sporty package with standard 17-inch wheels, a highly focused driver’s cockpit, featuring a low, but Lexus-soft premium power driver’s seat, a wide-grip steering wheel, a six-speaker Lexus Premium audio system with a CD player, auxiliary and USB inputs, integrated iPod control, Bluetooth audio wireless connectivity, and an integrated XM Radio receiver all surrounded by a driver-focused instrument cluster housing large, high-visibility, triple dials. (However, we had difficulty finding the exterior temperature, since it was so small.)

Since the CT 200h will only be available in one model, there are very few factory-built options available: perforated leather, leather-like seating, a moonroof, a voice-activated navigation system and a rear back-up camera. For those vehicles so equipped with the Nav, they will also be outfitted with the brand’s signature mouse controller. Also for those enthusiasts looking to personalize their sporty hatchback there are approximately twenty different dealer-installed accessories one can consider to trick-out their vehicle. 

Suggested Improvements

While we liked the all-new Lexus, there are a few things the automaker should consider revising to enhance the CT 200h. Lexus engineers should consider adding a manual transmission, sport-oriented (gas and brake) pedals, form-fitting front sports seats, a rear-seat center armrest (with cupholders) and a Blind Spot Monitoring System. Other than that, we believe Lexus has a winner on its hands.