Driven: Lexus IS300h - Telegraph Well, the good news is that the IS shares its hybrid system - and much else besides - with the larger GS saloon, rather than the Toyota Prius internals that the smaller CT hatchback makes do with. The petrol engine is a 178bhp, 2.5-litre, four-cylinder unit and the electric motor contributes 141bhp and 221lb ft of torque. Performance is respectable and, because there's a decent amount of torque to call on, the CVT 'box isn't too flustered. You do, however, still need to adapt your driving to the limitations of the transmission. Accelerate hard and there's a delay between the revs rising and the pace increasing. It's nothing like as bad as in the Prius, or various other hybrid models, but it doesn't give the effortless surge of pace you get with the IS's diesel-engined rivals. Take it steady, and the IS is a smooth, refined car to drive, with minimal engine, wind and road noise to disturb you. Unfortunately, the ride might. There's too much suspension thump over sharp bumps, and it feels as if each of the wheels weighs a tonne, as it thuds into potholes and drags itself over coarse surfaces. That, combined with steering that responds quickly off-centre but then becomes slow-witted means there's not a lot of fun to be had. Strange, then, that it feels as though, underneath it all, there's a good car stuggling to get out. Push a bit harder and the IS wakes from its slumber and handles fluidly, the rear-wheel drive chassis and decent grip making it almost - if not quite - fun. That, ultimately, is the preserve of the F Sport version, which gets different steering and suspension settings and a more aggressive look. Inside, the IS is what we've come to expect from Lexus: fantastic build quality, brilliant stereo system, dated Toyota switchgear and baffling high-tech controls. Overall, it's classy and comes across as less specced-up Toyota and more scaled-down LS limo, but Lexus, seriously, it's time to update the satnav graphics and ditch the "Remote Touch" control system. For all the faults of the iDrive and MMI systems in equivalent BMW and Audi models, they're a lot less fiddly than this. The IS is on a par with those rivals for cabin space, though, and it's comfortable, thanks to well-proportioned, supportive seats. Equipment and prices are what you expect for the class; not cheap, but you get a decent amount of kit for the money. The hybrid powertrain gives CO2 emissions of 103g/km, which is 6g/km less than a BMW 320D Efficient Dynamics auto. That's a plus point for anyone that runs one as a company car, although the IS can't quite match its German rivals' Combined fuel economy, with a figure of 64.2mpg to the BMW's 68.9mpg. Real-world fuel economy isn't likely to be as impressive - I averaged about 47mg over nearly 500 miles, on a mix of city, motorway and country roads. This new IS is much better than the car it replaces, and has a lot going for it, but there are still key areas (ride quality and powertrain chief among them) where some subtle improvements would make a big difference, and make it easier to recommend. As it is, the IS is an appealing alternative to - but not a match as an all-rounder for - the BMW 3-series. You get the impression that Lexus doesn't really mind, though. With Saab gone and Volvo - and even Infiniti - doing their best to emulate the Germans, Toyota's premium brand has become the default quirky choice in this sector, which is a victory of sorts. Lexus IS300h Luxury Price: £30,995 Price as tested: £35,900