The hybrid CT200h has never sold that well because it is more expensive yet less fuel efficient than a Toyota Prius, and North Americans are becoming less and less fond of compact hatchbacks.
AutoCar reports that Lexus’ European boss hinted that the CT200h might be replaced by a compact crossover, which would give the hybrid more appeal and more market share. The hatch is also getting stale and hasn’t seen a significant update in a while, and with buyers gravitating to crossovers in droves, the move makes a lot of sense for Lexus.
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Toyota is coming out with a C-HR compact crossover soon, which will be available with a hybrid powertrain. The platform could be used in a similar Lexus vehicle, which was previewed in the LF-SA concept pictured above that debuted at the 2015 Geneva Motor Show. A CT200h replacement will likely come out in about two years and be larger than this concept and less dramatically styled, but there’s no doubt that a luxury compact crossover hybrid will sell more than Lexus’ aging hatchback.