The Lexus CT 200h, the first 5-door hatchback hybrid bearing the Lexus brand, was classified in the C-segment (the same class as the VW Golf) to be pitted against the BMW 1 Series. A prototype was unveiled in March 2010 at the Geneva Motor Show, followed by production releases in late 2010 in Europe, in January 2011 in Japan, and in March 2011 in North America.

The hybrid system of the CT 200h uses nearly the same components as those for the Prius, combining a 1.8-liter 4-cylinder Atkinson-cycle engine with a motor. The CT 200h features a highly rigid body with performance dampers to improve ride comfort, as well as a newly developed suspension system, paddle shifters, and the drive mode select system. To realize agile handling and a smooth ride, the body weight has been reduced through the use of aluminum for the engine hood and the hatch door. The luggage compartment liner is made of Ecological Plastic, making Lexus the first car brand in the world to adopt this plant-derived polyethylene terephthalate (PET) resin. The CT 200h is also the first Lexus to come standard-equipped with a vehicle approach alert system, which generates a simulated engine noise and warns pedestrians of the otherwise silent approach of the hybrid car.