Lexus has ducked its most important fleet model, the IS, well below 161g/km as the focus on green issues continues to drive emissions down.

The BMW 3-series rival was nestled just above the capital allowance boundary but changes to the gear ratios and engine management system have cut CO2 of 163g/km down to 148. It’s still above equivalent rivals, but at least it’s below the important fleet cut-off.

Though the engine matches the BMW 320d and Audi A4 2.0 TDI 170 for power, it’s slower to 62mph than either and has a very narrow power band, which can lead to the driver being frequently caught in the wrong gear. The engine isn’t a patch on the Audi A4’s, which in itself is behind the 320d. Official mpg for the IS220d is also well off the pace at 50.4mpg compared to the BMW’s 58.9 and Audi’s 55.4. But the Lexus achieves an impressive 50.3p per mile figure, not least because of 43.6% retained value.

It’s a shame, because the IS is a likeable car. It looks better than either of its rivals and is better kitted out too, and at a lower price. But the engine just isn’t good enough to compete with two more well-rounded and developed supremely popular rivals.

Lexus IS220d SE-I
P11D price £24,685
Model price range £22,925-£53,376
Fuel consumption 50.4mpg
CO2 (tax) 148g/km (20%)
BIK 20/40% per month £82/£165
Service interval 10,000mls
Insurance group 13
Warranty 3yrs/60,000mls
Boot space 378 litres
Engine size/power 2231cc/17PS
Top speed/0-62mph 135mph/8.9secs
On sale Early 2009
Score 5/10
Verdict Well-priced and stylish, the
likeable IS220d is badly let
down by an unlikeable engine
and gearing. Emissions are
still a long way behind the
German class best