A small car that costs nearly a quarter of a million Ringgit is going to raise a lot of eyebrows. Small is cheap, big is expensive – that’s the usual consumer hierarchy unless you're selling bikinis or diamonds.

The profit margin on small cars is too thin for manufacturers to invest their best and the brighest minds into developing it. Also, no ambitious car engineer wants to boast about building the best entry-level luxury car, so motivation to excel is limited.

When the CEOs of Mercedes-Benz or BMW talk about progress, they rarely mention the A-Class or the 1 Series. Neither do they drive one themselves.

The world’s only small car built by the manufacturer's best and the brightest engineers

The Lexus LBX is the only exception to engineers’ discrimination against small cars.

In 2018, then-President and current Chairman Akio Toyoda said to his engineers “Build me a car that’s like a sneaker,” pointing to his favourite pair of Maison Margiela sneakers.

Chairman Toyoda likens his Lexus LM and Toyota Century to his leather shoes, but he wanted a car equivalent to sneakers because he also enjoys driving himself.

Immediately, top engineers at Toyota jumped at the chance to work on the Chairman’s pet project, knowing that success could accelerate their careers.

Toyota’s current President, Koji Sato, was promoted partly due to his success as chief engineer of the Lexus LC, another project dear to Akio Toyoda.

This is why the Lexus LBX doesn’t drive like any of its German rivals, but a compressed luxury car built by the best minds at the world’s No.1 car manufacturer.

The LBX's German rivals are built by their company's second- and third-rate talent, while the LBX is put together by Japan's best and brightest, approved by the world's only race car-driving car company boss.

The world’s highest quality but lowest profit margin small car? Maybe

Few small cars can match the Lexus LBX in the effort and resources spent in perfecting it.

The first design proposed was quickly thrown out Akio, who simply told chief designer Simon Huphries, “If this is it, then it’s ‘thanks but no thanks.’”

Mid-way through the project, Chairman Akio, who also goes by the nickname Master Driver Morizo, commented that the prototype’s seating position is a bit too high for him to be ‘one with the car.’

The steering rack’s angle and pedal box position was also off. It didn’t meet the Tazuna element in Lexus Driving Signature, the emotion that all Lexus vehicles, regardless of price point, must embody.

Changing the seating position was a nightmare as the entire chassis had to be re-designed. So are the front seat frames and wire harness layout 

To keep cost low, the LBX was developed from the cheaper TNGA-B platform from the Toyota Yaris Cross’ (European and Japanese market model), but Master Driver Morizo didn’t like the compromise.

Thus, the LBX has a different wheelbase, track width, steering rack angle, suspension geometry, pedal placements, and seating position from the Yaris Cross. The wider track width also means that the improved LBX can no longer fit into previously developed jigs on the production line.

“I was a bit worried when Akio asked us to lower the hip-point a little more as he wanted to be one with the car more, as time was running short,” said chief engineer Kunihiko Endo, who also had to work with the production engineers at the Iwate plant to redesign the production processes.

In other manufacturers, financial controllers would’ve stopped the insanity and use their calculators to beat the engineers into submission.

One man’s perfect car is another man’s overpriced toy

The LBX is close to perfection, but it’s close to perfection for someone like Master Driver Morizo. If you want a car with karaoke or dancing light shows, look elsewhere.

The LBX is a compressed luxury car for those who care about details like heel-to-hip distance and subtle vehicle movements when it stops or turns. If you are impressed with gimmicky features or care a lot about other people’s recognition of your status, the small but high-priced LBX is not for you.

Takashi Watanabe, President of Lexus International have this to say about who the Lexus LBX is aimed at:

“There’s a phrase we use when thinking about the kind of brand we want Lexus to be. We want to be the ultimate brand for authentic people, as Akio has said many times. We place a lot of importance on that value. In that sense, discerning people don't necessarily choose high-end luxury cars. When they want time to relax and return to their true selves, and when they want a casual car for short outings, they'll want a Lexus that is good for just popping out. This is the car that achieves that.”

There is a saying “Money can buy the appearance of wealth, but true wealth shows itself without needing to flaunt it.” I experienced this firsthand while driving the LBX to a wet market near an upscale neighborhood and came across another LBX.

A simply dressed lady was loading her vegetables and meat from the market into her LBX. Even without any loud attire or fancy handbags, it’s obvious that she is not from a working-class family. Truly wealthy people have an aura in their demeanour and character that exudes from inside them, regardless of what they wear. And she was quietly going about her morning market runs, using an LBX like it’s a Myvi, the ultimate flex.

Watanabe was spot on about the demographics of buyers who will pay for an LBX.

So, is the LBX perfect to drive and ride in?

First, here are the basic specifications for the Lexus LBX

• Engine: M15A-FXE 1.5-litre VVT-iE, 3-cylinder, naturally aspirated petrol-electric full-hybrid
• Power: 136 hp (total system output)
• Torque: 185 Nm
• Transmission: Beltless E-CVT, front-wheel drive
• High voltage battery: 1 kWh, bi-polar NiMh
• 0-100 km/h: 9.2 seconds (claimed)
• Fuel consumption: 3.8-litre / 100 km (claimed, NEDC), 4.4-litre / 100 km (tested)
• Ground clearance: 220 mm
• Kerb weight: 1,340 kg
• Boot capacity: 315 litres (992 litres with rear seats folded)
• Safety: 8 airbags, full suite of Lexus Safety System+ (LSS+) advanced driving aids including ACC (DRCC) with Stop&Go and RCTA
• Price: RM 238,888 to RM 270,388, on-the-road excluding insurance
• Origin: Fully imported from Japan (CBU)

Bi-polar NiMh technology is something few understand, you just need to know that it's very good

The last time I experienced a three-cylinder engine that sounded this good was in a BMW i8 plug-in hybrid, nearly a decade ago. Increasing throttle pressure on the floor-mounted pedal, and the M15A-FXE gives a refined, almost instrumental-like note of naturally aspirated goodness. Who would’ve thought a three-cylinder engine could sing with your right foot?.

In a blindfold test, you would struggle to guess the engine type.

And unlike the plug-in hybrid BMW i8 (or a fully electric Tesla or whatever), this is a regular, no-charging-required full-hybrid. No route planning or charging nonsense, just pump petrol and drive the full lengths of the earth, if you want. 

The LBX also doesn’t drive like anything its modest on-paper figures suggest. On twisty stretches of Karak Highway, the LBX is a point-and-shoot pocket rocket, with torque delivery that’s responsive and precise.

The reason? The bi-polar NiMh high voltage battery under the rear seats. But aren’t NiMh batteries inferior to Li-ion? Even smartphones no longer use NiMh batteries. The keyword here is ‘bi-polar,’ not NiMh.

No, this is not that kind of bi-polar, but a new Toyota-patented battery design that builds on NiMh chemistry’s proven superior reliability in hot and humid climates, perfected to double the power density, matching that of Li-ion, minus the complex cooling circuits required by the latter.

With bi-polar NiMh, you get the superior reliability in tropical climates and the power.

Driving at normal pace, including highway runs that are occassionally above the speed limit, the LBX recorded a real-world fuel consumption of 4.4-litre/100 km. With a 36-litre fuel tank, it can easily cover 800 km in one tank of fuel. 

Handling? It’s more satisfying than a BMW X1 or a Mercedes-Benz GLA. The car rotates around you, and despite its short wheelbase, it remains stable.

The LBX is not fast enough to scare you, but it’s swift enough for you to enjoy the open road, and that’s exactly what customers want.

Tap the brakes and tighten your lines as you aim for the corner’s apex. The car responds with an initial pitch, but the weight doesn’t shift to the front as much as expected, thanks to some intelligent brake balance control software. The result is you don’t wait for the chassis to load up before you change steering direction to aim for the next apex and power out. The LBX’s light weight enhances its agility.

The LBX's chassis controls were fine-tuned by Masahiro Sasaki, ex-GT 500 racer and current driver in Akio Toyoda's personally-owned Rookie Racing Team. Sasaki tuned the LBX to be a small car that even novice drivers can feel and enjoy the car's dynamics. He also made sure that it rode comfortably on the roads of his hometown Iwate, a region known to have to the poorest roads in Japan, due to snow and ice cracking the the tarmac.

This is why the LBX rides so comfortably on poorly surfaced Malaysian roads. Just make sure you check the tyres, as some lower-spec Premium variants come with Dunlop tyres that struggle with grip, especially in the wet.

Seats? It’s everything you expect from a Lexus, and more. The LBX is not an immediate choice for a long-distance trip car, due to its smaller cabin but for an empty-nester couple, they can comfortably cover the entire stretch of the West Coast of Peninsular Malaysia in one and don’t feel that much shortchanged from a Lexus NX.

Weaknesses of the Lexus LBX

It’s a small car, there’s no denying it. The shoulder room in front is rather tight, and the centre arm rest is only wide enough for one person’s use.

The glovebox is also not wide enough to keep the most important driving accessory for Malaysians – the ‘fly swat’ TnG card holder for tolls and parking.

Legroom? The footwell is tight, with the dead pedal that’s just wide enough, barely. With a 170 cm driver seated in front, the back seat won’t be able to comfortably sit taller adults for longer distances. Still, it’s roomier than the Volvo EX30, despite appearances.

The engine bulkhead also eats a bit too much into the front passenger's footwell, forcing the front passenger to push the seat further back for a comfortable seating position.

The user interface for the Luxury variant takes time to get used to. Touching the capacitive buttons on the steering wheel doesn’t affect the instrument cluster; instead, a menu is projected on the windscreen.

You will hate it at first, but after a week or so, you will appreciate that the Head-Up Display-based controls make a lot of sense.

Still, the menus could’ve been simplified. In the lower range Premium variant, there’s no such problem, as it uses good ‘ol physical buttons.

For a Japanese car, the Lexus LBX has rather poorly calibrated driving assistance system. The driving-related functions like Dynamic Radar Cruise Control and Lane Keeping System work well enough, slowing down and accelerating smoothly, while steering interventions are subtle.

The problem is parking-related assistance features, specifically the Parking Brake Support feature. On two occasions in two separate locations, the feature suddenly applied maximum braking pressure when I was (slowly) reversing into a tight spot, even though there was easily a two-feet gap between the car and the concrete base of a lamp post.

Thankfully you can permanently disable the feature, but you will have to live with an annoying amber warning light on the instrument panel. Also, why would you need parking assistance in a car as small as the LBX?

Conclusion

The conclusion is simple: buy the Lexus LBX. It has its own shortcomings due to its small size, but the people who buy an LBX are likely to also own a Lexus RX or Toyota Alphard.

If you love driving and want a small, reliable but luxurious car for your daily needs, there’s no comparable model that can match the LBX.

The LBX’s hybrid drivetrain is covered by an 8-year warranty, with an option to extend it to 10 years. The price of the warranty extension is yet to be confirmed but buyers can purchase it later.

As for chief engineer Endo, his big moment was when Akio Toyoda drove his final prototype at the Shimoyama proving ground and said, “This is just as I have imagined.”

When Endo received the recognition, he teared and said, “I've never been praised like that, so today was a great day.”

Endo was previously responsible for the Europe-focused Toyota Auris (minor change model).

With other brands, buying their cheapest entry-level model also means that you are buying a car that the manufacturer paid the least attention to, and is the least proud of.

When you buy a Lexus LBX, you are not buying their lowest priced model, but one of the most difficult to develop Lexus, one that was most closely supervised by Chairman Akio Toyoda / Master Driver Morizo himself.