We all know that size matters. But small definitely shouldn’t be seen as inadequate. Just ask Lexus .

The luxury Japanese carmaker has launched the smallest car it’s ever built, the LBX self-charging hybrid. Why? Because it knows more people are downsizing when it comes to their car, but in doing so those owners don’t necessarily want to experience any downgrading in the quality either of the car’s interior, or its ride. So, what exactly is the LBX? First, LBX stands for Lexus Breakthrough Crossover.

I know, a bit of a mouthful. It’s also only the second-ever car from the company to have a three-letter name: the first was the LFA supercar. So we’re looking at extremes of the Lexus range here.

Prices for the LBX range from £29,995 to £40,555. Importantly, right from the start, it’s crucial to stress the baby Lexus comes with all the premium quality and technology that has made the company's larger cars popular. At its core though is the Toyota Yaris and Yaris Cross.

Like its Toyota siblings, on which it’s loosely based, the LBX uses the same running gear. That means a 1.5-litre three-cylinder petrol engine combined with an electric motor and battery, with the system tuned to deliver 134bhp, a 5bhp increase over the most powerful version of the Yaris.

And like the Yaris Cross, the LBX is available with either front-wheel drive, or four-wheel drive. I’m driving the FWD version in Takumi trim. Important to stress that the Lexus shares no body panels with the T.