The model introduces full hybrid power to the UK’s small luxury car market, and is being positioned by Lexus to compete with the BMW 118d and A3 2.0 TDI.

With 94g/km, the model qualifies for a Band A rating for Vehicle Excise Duty – giving a zero annual road tax bill and a 10% Benefit-in-Kind charge for company car tax payers. It also has a combined fuel consumption of 68.9mpg. As a result, Lexus says it outperforms key rivals in terms of CO2 emissions and combined cycle fuel economy.

The carmaker also says the CT 200h offers a competitive price advantage, when like-for-like specifications are compared.

In the UK the CT 200h is available in three equipment grades, SE-I, SE-L and SE-L Premier.

On-the-road pricing starts at £23,485 for the SE-I model, including VAT at the new 20% rate as the first cars will reach customers early in 2011. For the SE-L, the price is £25,200 while it rises to £30,635 for the SE-L Premier.

Standard features include 16in or 17in alloy wheels, Bluetooth, active brake lights, dual-zone climate control, push button start, LED daytime running lights, rain-sensing wipers, leather upholstery, heated front seats, front and rear parking sensors, LED headlights with cleaning system, cruise control, 13-speaker Mark Levinson audio system, HDD satellite navigation, rear parking monitor (in rear view mirror).