Lexus CT200h to be killed for small hybrid SUV

Lexus has revealed that its slow-selling CT200h hatchback could be replaced by a new small hybrid SUV to capitalise on a growing global market for crossovers.

Revealing the plans to British magazine, Autocar, Lexus’ European boss Alain Uyttenhoven claimed that the need to dramatically increase sales in Europe could drive the Japanese car-maker to produce a premium rival to a Nissan JUKE.

“In Europe, we need to get annual Lexus sales above the 100,000 mark -- something that would finally give us visibility in the market.”

Currently the Toyota Prius-based CT200h only commands sales of 10,000 per year globally. Not impressive, considering the segment in Europe alone accounts for more than 750,000 vehicles.

Uyttenhoven pointed to the success of Lexus’ small range of SUVs could provide the key to dramatically increasing sales.

Last year, out of the total 652,000 cars Lexus sold globally, 150,000 were of the outgoing RX models and another 150,000 of the new small NX. This year, demand for the new RX, Lexus says, should push sales past 200,000. The NX, meanwhile, is expected to crack 170,000.

Lexus Europe’s boss refused to confirm what size the new SUV will be or what concept might inspire the production vehicle.

Instead, Uyttenhoven hinted at its positioning in the market: “A full 50 per cent of the European luxury market exists below the €40,000 [$A62,000] mark”.

This remark suggests a new SUV significantly smaller than the current NX and closer in size and price to Nissan's range-topping JUKE.

At last year’s Geneva motor show Lexus previewed the small LF-SA crossover concept that could preview the CT200h replacement.

The LF-SA concept (SA stands for ‘small adventurer') was claimed by Lexus to be the smallest car it had ever made and hinted a production car based on the concept could be on sale as soon as 2017.

If it does arrive next year, the Japanese car-maker says the 3.4-metre long SUV could be priced around the same as the small CT200h.

Under the bonnet, the LF-SA was believed to be powered by an efficient petrol-electric powertrain, likely to be based on the current Toyota Prius’ hybrid system comprising a 72kW/142Nm 1.8-litre engine assisted by a 53kW/163Nm electric motor.

The current CT200h is expected to soldier on until at least early 2018.