With the entry-level premium marketing continuing to grow in Europe, Lexus is planning to get in on the action by bringing a vehicle to market that will complete with the Audi A3 and BMW 1 Series.

The new vehicle will slot in under the IS250 and will be a hybrid. This may sound a lot like the upcoming HS250h (pictured above), but its not. For starters, Europe will not get the HS250h, and this new model will be a hatchback. It will, however, use the new Prius platform and be front-wheel drive.

The vehicle will not be a performance car but aimed at economy-minded diesel offerings from Audi and BMW. A concept version of the entry-level Lexus hybrid is expected to be unveiled at the Frankfurt Auto Show in September.