Toyota Motor Corp. on Tuesday launched its first Lexus built as a hybrid from the ground up, widening its gasoline-electric lineup amid the recent spike in demand for fuel-efficient vehicles.

The HS250h is Toyota's second model designed only as a hybrid, following the popular Prius. It boasts superior power to the Prius and is cheaper than other models under the luxury Lexus brand.

"Power is important for a Lexus, but we want to create a car with power and environmental friendliness," President Akio Toyoda told a news conference.