LEXUS has unveiled an all-new GS300 which will go on sale in the UK early in the new year. Toyota's luxury division says the newcomer is better equipped than ever to take on the prestige competition from BMW, Mercedes-Benz and Audi.

The new 300 is more compact but boasts more interior accommodation than its predecessor and a new entry-level model takes Lexus into previously uncharted territory. Performance and fuel economy are both better than the previous model and Lexus says the handling is also more sports-oriented.

Although the £34,070 flagship SE is pitched firmly against the German-dominated luxury market, at £31,200 the more affordable S version is within reach of executives considering an upmarket Ford or Vauxhall. Powered by a 3.0-litre six-cylinder developing 220bhp, the new 300 has an intelligent five-speed autobox, traction control and an impressive list of luxury equipment fitted as standard.