According to a report from Spyder7, Lexus is also mulling over a new city car rumoured to be positioned even below the UX B-SUV and the currently sold Lexus CT hatchback.

Lexus expressed its interest in small urban cars with the Lexus LF-SA at the 2015 Geneva Motor Show. The concept car was designed by ED², the company’s European design studio, and is described as an ultra-compact, sub-B-segment, urban 2+2. It measures 3,400 mm in length, 1,700 mm in width and 1,430 mm in height.

The Japanese publication reporting the development says that the A-segment city car from Lexus will likely have a regular 5-door hatchback body style and measure 3,950 mm length. Lexus would co-develop this model with BMW, making it the BMW Group-Toyota Motor Corporation JV’s second project after the Toyota Supra/BMW Z5.

Rumour has it that Lexus will place BMW’s 1.5-litre three-cylinder engine under the hood of its new city car, with an expected power output of 140 PS. The Toyota Motor Corporation’s 8NR-FTS 1.2-litre turbocharged four-cylinder unit also seems like a potential candidate. This engine is already offered in the Toyota Auris and Toyota C-HR among others.