The Lexus CT 200h will be the most important model for the company in its UK history when it launches in Britain later this month.It is the first full hybrid to be introduced into the C-sector premium class and Lexus believe sales of over 4,000 this year and 6,000 in 2012 will effectively double total annual registrations for the brand in the UK and take them past the 12,000 mark.The Lexus CT 200h five-door becomes the new entry level model to the marque in Britain and will compete against the BMW 1 Series and Audi A3 in particular but also offer an alternative to upper level Focus and Astra model series, Citroen C4 and similar models.CT 200h means Creative Tourer, 200 equates to the performance equal to that of a conventional 2.0-litre petrol engine and 'h' of course means hybrid.There are three trim levels for the new CT 200h range; SE-I, SE-L and SE-L Premier, priced at £23,485, £25,200 and £30,635 but they all share the same 98bhp,1.8 petrol and 82bhp electric motor Lexus Hybrid Drive system.There is also continuously variable transmission and its sophisticated 'brain' which offers full electric, eco and sport on-demand driving modes with mechanically assisted drive backing up the nickel-metal hydride battery pack and 60KW AC motor. Lexus CT 200h specificationIt is brimming with technology such as stop and start, regenerative braking, but also features low consumption air conditioning integrated with seat heaters, low power audio amplifiers and even LEDs front and back are available to minimise power drain, with some trim components made from bio-materials.The equipment packages take logical steps adding leather trim and heated seats to the SE-L and the SE-L Premier gains Mark Levinson sound system, full map HDD navigation and powered front seats.You can even specify special dampers cross-linking the suspension left and right sides to reduce flexing and improve stability and handling response to the standard electric power steering.Lexus believe the top model will account for just 10% of CT 200h registrations, the bottom version will take 35% and 55% will be filled by the mid-range version.However, initial orders are slightly higher than expected for the mid and top of range derivatives but this is expected to even out once the eager early adopters have taken delivery. Lexus CT 200h hybrid powertrainThe Lexus CT 200h is part of the company's plan to offer a full hybrid version in every sector and the system uses a modified version of the power train which originated in the stable-mate Toyota Prius hatchback which has been on sale in the UK for eleven years and seen 45,000 registrations.It is a proven system with very good reliability and has also been adopted for the Toyota Auris and forthcoming Yaris hybrid due in 2012.Since launching their first hybrid model in August 1997, to date Toyota has sold globally 3.03 million hybrid vehicles under the Toyota and Lexus brands.As of the end of February this year, Toyota calculates that its hybrid sales have led to approximately 18 million fewer tonnes of CO2 emissions than would have been produced by petrol-powered vehicles of comparable size and performance.Lexus has adapted the hybrid system for its GS and RX models but with much bigger engines and the significant point about the 200h is that it is the smallest Lexus to use the system with its Atkinson cycle 1.8 litre engine and electric motor which emit just 94gkm of CO2.The 200h has a completely new chassis, tuned for a more dynamic feel, and five-door body style which is particularly stiff and offers a maximum 985 litres with the back seats folded. Lexus CT 200h performanceThe combined 134bhp output gives it a 0-62mph time of 10.3sec and maximum 112mph with the electric mode alone taking it to 25mph for a mile.In real time situations, Lexus has found there is very little demand for the pure electric mode and that at least half of the time it is running along with the petrol engine. Lexus claim it will average nearly 70mpg.Running costs are also kept down with a CAP predicted residual value of 39% over three years for the SE-I, matching the current best in segment.This combined with its low financial penalties will help it with company car registrations, especially the 10% BIK tax and first-year 100% write-down against corporation tax.The zero cost road tax and being exempt from the London Congestion charge will also appeal to many as will the 15E to 17E insurance group rating. Lexus CT 200h first impressionsThe Lexus brand has been a powerful attraction in the UK premium sector for over two decades, intensifying with the arrival of the hybrid saloon and SUV models a few years ago to back up the petrol saloon and sports car models.But to many these were still very expensive even if well equipped and brimming with cutting edge technology.Now, Lexus has moved the goalposts with the arrival of the new entry level hybrid CT 200h c-segment series of three models which are firmly aimed at the company car user choosers who need to cut their tax and fuel bills.The series is heavy on equipment and features, light on emissions and economy and Lexus has taken a firm decision to give the 200h a dynamic chassis which it believes the UK and European-target BMW and Audi drivers want in their hands.Certainly, the UK sales projections for the Lexus 200h are eye-opening, but they may have an eye-watering time achieving them over the next 18 months, whether or not the market economy improves.While I could not fault the engineering and mechanical refinement of the Lexus 200h powertrain, its effortless ability to switch power delivery responses and eek out the fuel I was far less impressed by its jiggly and noisy ride in what is supposed to be a premium level saloon.It is rough-riding over some bad surfaces and continuously hard over everything else, never showing a soft side to its nature.The Lexus 200h does turn and slow very well and stability is impressive at all times but it's badly led down by the over-firm springs and dampers, big wheels and tyres, and there is no adaptable or selectable switching system to refine the ride to personal taste or conditions.The seats do a very good job at holding occupants securely and comfortably and you have good visibility to place the car through a corner or into a parking place.It will take four in comfort, a fifth in the back at a squeeze. The boot-floor is higher than you might expect with its battery pack beneath but the nominal capacity is fair and quickly tripled with the back seat dropped flat.I can see how the Lexus 200h might attract premium sector buyers who value technology led engineering and design backed up by second to none quality and dealer service, but I wonder how many will be put off by the ride issues after an initial test drive, or some who will simply try and fly after a 24 months stint behind the wheel. Lexus CT 200h MILESTONES Lexus CT 200h SE-L E-CVT (best selling model) Price: £25,200.Engine/transmission: 1,798cc 4cylinder, 16v, 98bhp, 142Nm from 2,800rpm, Atkinson cycle petrol engine with 82bhp AC generator 207Nm, and 37bhp 650V nickel-metal hydride battery; electronically controlled CVT.Performance: 112mph, 0-62mph 10.3sec, 68.9mpg (54mpg on test), CO2 94g/km, BIK company car tax 10%. VED road tax £0.Insurance group: 15E.Dimensions/capacities: L 4,320mm, W 1,470mm, H 1,440mm, boot 375 - 965 litres; kerb weight 1,410 - 1,465kgFor: Refined power-train, steering, brakes and handling, figure-hugging seats, low taxes.Against: Jiggly ride and too much road noise intrusion, dark interior.