Lexus is currently developing a dedicated hybrid model that’s set to go on sale in 2009. The new car will be Lexus’ most affordable hybrid and will be positioned above the current IS sedan. The hybrid will be priced in between the IS and RX 400h SUV and will be initially offered to the Japanese and UK markets. It’s still undetermined whether or not it will be sold in the US.

“Hybrid is the brand-defining technology for Lexus,” said Steve Settle, the head of Lexus in the UK, during an interview with Automotive News. The eco-friendly cars account for 70% of Lexus sales in the UK, so it’s not surprising that the luxury brand is ready to introduce a hybrid only model.

Lexus has already introduced an efficient diesel engine in its IS sedan, but management see hybrid technology as a way for to differentiate Lexus in the luxury segment. Also, the average hybrid buyer’s income level is relatively high, and vehicles like Toyota’s Prius don’t appeal to individuals in this segment.

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