The Lexus LF-Ch, the centerpiece of the Japanese firm's stand at the 2009 Frankfurt motorshow, is concept model for a new baby Lexus that will compete in Europe with entry-premium hatchbacks such as the Audi A3 / Sportback, BMW 1-Series and the recently freshened up Volvo C30. As anticipated, Lexus confirmed the development of a production version based on this concept. "Let me stress that you are not looking at a market study … or hearing about vague intentions" said Andy Pfeiffenberger, vice president of Lexus Europe during the presentation of the car in Frankfurt.

"This LF-Ch concept is a clear indication of our entry plans for the compact premium segment in the near future, with the world's first ever premium compact, full hybrid. That distinction will make this dynamic car stand out in what will be Europe's largest premium segment," Pfeiffenberger added.

Though Lexus did not give a specific launch date, media reports suggest that the five-door compact hatch should be on the market within the next two years. Besides the gasoline-electric full hybrid version, the production model will most likely be offered with conventional gasoline and diesel engines as well.