Lexus, the luxury car division of Toyota is planning a five door compact hatchback on the lines of the BMW 1-Series and the Audi A3. The car will be launched as a concept at the upcoming Frankfurt Motor Show in September 2009.

According to the company insiders the green signal for the car was given only late last year when the European executives for the brand insisted that the Europe’s premium segment was an area of the market “too lucarative not to be in”.

Further the sources suggest that the car would be named either ‘CS’ or ‘BS’ and will be a petrol-electric hybrid model only, based on U.S. market only HS250h which comes with a 2.4 litre gasoline electric hybrid hybrid engine developing 187 bhp of power.

The front wheel drive car is called the C-Premium and is a 90% percent match for the real thing which will be seen at Geneva Motor Show next year according to the sources. The new Lexus will go on sale in the UK by Autumn 2010.