Think Audi A3, BMW 1-Series and Volvo C30 and you can better understand the competitive set Lexus is targeting with its all new CT200h 5-door hatchback to be launched in February 2011. Also think of the CT200h as a product really designed for the European market where it is right-sized and right-styled.
The competitive set in the USA sells less than 1,500 units per month now – or about 18,000 per year – small potatoes in a 12,000,000 unit industry. Lexus is going after 1,000 units per month – immediately intending capturing 40% of this small segment. Can they do it?
Given pricing in the low $30,0oo range, the CT will undercut the IS 250, but Lexus management tells us it won’t squeak in under the $30K barrier which could prove to be a psychological threshhold.