New Lexus GS 300h costs from £31,440

The new Lexus GS 300h, which offers running costs that better the diesel competition, will cost from £31,440 in the UK.

The New Lexus GS 300h (pictured) will cost from £31,440 in the UK

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Lexus revealed a second hybrid version of the GS at Shanghai in the spring – the Lexus GS 300h – which offers better economy and lower running costs, especially for company car drivers, and it’s now on sale in the UK.

Lexus has introduced a new entry-level SE spec for the GS 300h to make its headline price even more attractive, but the GS 300h SE still gets 17″ alloys, DAB, DVD, Cruise, push-button start, parking sensors, xenons and electric, heated front seats.

Other trim levels are Luxury, F Sport and Premier – as on the rest of the GS range – which you’ll need to dig in to if you want stuff like leather and SatNav, but opting for the base trim isn’t too hairshirt and will save you a few bob if you have BIK to pay.

With emissions of just 109g/km, and the benefit of a hybrid powertrain, the GS 300h will cost you £1,638 as a 40 per cent taxpayer, almost £1,000 a year less than the BMW 520d SE and £400 a year less than the Mercedes E220 Hybrid SE.

With the promise of 60.1mpg official economy for the SE (57.6mpg for the Luxury and Premier and 56.5mpg for the F-Sport) the GS 300h promises to be pretty frugal on fuel and, claim Lexus, cheaper to service and maintain too than rivals.

The new Lexus GS 300h is now on sale with first cars arriving in Lexus showrooms in January 2014.