Toyota is considering developing a new Lexus entry level model to compete with BMW's 1-series.

Toyota's head of sales, Tokuichi Uranishi, told German consumer magazine Auto Motor und Sport, that "we can foresee a competitor to the BMW 1-Series".

Uranishi said that a lower priced entry model would help Lexus build up strength in Europe, now that it has gained a foothold.

Lexus is expecting to sell around 56,000 vehicles in Europe this year. By 2015 the brand is targeting sales of 150,000 units a year. Its main market is the USA where it sells 500,000 units.

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