THINGS are about to get a lot tougher for Lexus in the small premium hatchback segment. When the new Infiniti Q30 arrives in 2015, Lexus will no longer be the sole Japanese representative in the small prestige class.

The CT 200h hasn't made the impact Lexus bosses hoped on a class dominated by Audi and BMW.

So, for 2014, Lexus has embarked on a comprehensive package of improvements encompassing styling, handling and equipment.

The CT 200h retains its unique status as the segment's only full hybrid luxo hatchback - but it needs to offer even more if it is to succeed.

It's a Lexus, right? So how much does it cost? The range starts at £20,995 for the entry level S model, which is £1,000 less than before. You won't find a cheaper new Lexus.

Is it a gas guzzler? Definitely not. The retail price is only one aspect of the CT 200h's whole life costs. Exhaust emissions across the range are below the 100g/km threshold - indeed the S model puts out just 82 g/km of carbon dioxide - meaning no charge for annual road tax. And the petro-electric drivetrain means you won't pay a harsh price at the pumps for driving a Lexus. Bosses reckon the combined fuel consumption - including periods when the car is running on battery power - works out at 78.5 mpg.

What other improvements can we expect? New styling elements are said to "strengthen the car’s road presence". This is most noticeable in a much stronger treatment of the Lexus signature grille, which has been rendered wider and lower to emphasise a ground-hugging look. The F Sport model adopts the same mesh pattern as the new IS F Sport saloon. It also gains a new rear spoiler with integrated air ducts. New detailing, wheel designs and a shark’s fin antenna have also been introduced across the CT range.

And inside the cabin? A new slimline seven-inch colour monitor on the centre console, a new steering wheel adopted from the new IS and a new shift lever design are the major highlights.

What about the kit? The mid-range Advance model benefits from a comprehensive upgrade that introduces parking sensors, heated front seats and the new, fully integrated Lexus Navigation system as standard for no extra cost.

That's great but what about the rather flacid handling? Well, Lexus reckons the CT 200h will deliver better ride quality, stability and handling. That's great but it is being rather coy about hwo that will come about - so the jury's out on that one.

WHY IT'S GREAT Peerless build, very refined, cheap to run.

WHY IT AIN'T: If the CT 200h is to run with the pack Lexus needs to make it more involving and enjoyable to drive.

VERDICT: The CT 200h remains something of an oddity. Thanks to its hybrid drivetrain the CT has class-leading refinement and, at its best, nothing can touch it for relaxation. But, in a class dominated by BMW and Audi, the actual driving experience is rather dull which makes the CT a hard sell. Hopefully the new improvements will sharpen up the steering, boost the engine response and make the Lexus every bit as enjoyable to drive as it is to own.

SPEC: Engine: 1798cc four-cylinder, 16v, petrol, plus electric motor/battery Power: 98 bhp @ 5,200 rpm Torque: 105 lb/ft @ 2,800-4,400 rpm Max speed: 113 mph 0-62mph: 10.3 seconds Marks out of ten: 6