New Entry-Level Lexus in the Works

Toyota Motor Corp.’s Lexus unit is developing a new small car that will replace the current CT hatchback early next decade.

The new model will be positioned below the UX compact crossover vehicle that was introduced last year, Pascal Ruch, who heads Lexus' European operations, tells Autocar. The vehicle is expected to ride on Toyota’s New Global Architecture that carries a range of models, including the Prius hybrid, Camry sedan and C-HR crossover.

The aging CT, which already has been discontinued in the U.S., is expected to be available in other markets until about 2021. Lexus introduced the hatchback in 2011.