This compact sports sedan has been launched at the Geneva Motor Show and Lexus claims that the all-new IS is a "highly sophisticated experience".
The next generation IS also marks the introduction of the first ever Lexus diesel engine.
The most powerful unit in its displacement category, the new, all aluminium, 2.2 litre power plant fulfils the most exacting standards of Lexus performance and refinement.
The introduction of a diesel engine within the Lexus model range will have a fundamental impact on the strength of the brand throughout Europe.
"Diesel is critical to any brand?s success in Europe," says Karl Schlicht, vice president of Lexus Europe.
"Our first diesel engine will open the market to us and it will put Lexus on a level playing field."
The increase in sales volume generated by the new Lexus IS will instigate the growth of a dedicated dealer network of some 340 Lexus outlets throughout Europe.
As a result, by 2010, Lexus anticipates a three to four-fold increase in European sales.