Lexus puts a small engine at the bottom of its GS range. And the mid-size four-door saloon appears better for it.

WHAT IS IT? This is the new entry-level GS sedan, a car that’s now offered with four-cylinder, V6 and stonking-great V8 engines, as well as more frugal hybrid models.WHY WE’RE DRIVING IT The GS200t gets the new 1998cc turbo-petrol four-cylinder that we’ve seen in the NX SUV and the RC coupe. It replaces the V6-powered GS250 and is faster, more efficient and comes with more kit.

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PLUS: Engine and cabin refinement, strong fit and finish, far superior to its predecessor MINUS: Dated interior, base-car cabin feels low-spec, only two trim levels

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In the GS, the 1998cc turbo-petrol is an absolute peach. It makes the same power as in the RC200t we’ve tested, and the same unit first appeared in the compact NX SUV. Yet its refinement and buttery-smooth character suit the GS’s premium mantra perfectly.

Lolling about town, the refinement of the engine isn’t immediately obvious, as it’s so quiet. In fact, you needn’t bother with the hybrid GS if it’s refinement you’re after, as the near silent operation of the 200t is remarkable.

At $75,000, our entry-level Luxury spec is the starter for the two-model line-up, headlined by the larger-wheeled and more aggressively styled F-Sport, which costs $83,000.

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Yet the depth of the 200t’s talent stretches from around town, limousine-like refinement to a dynamic ability that’s pleasantly surprising. The ride on the standard 17-inch alloys, which notes every inch of the pattered test route we’re on, may not be quite as silken as the driveline combo, but the GS’s cornering abilities reveal an agility that’s completely unexpected.

The steering doesn’t offer a lot of feedback, despite the chassis communicating the surface beneath, but the roll into corners is well controlled and overall handling is benign and predictable with strong road-holding allowing a concerted attack through each corner.

Part of that is courtesy of the new ‘performance damper’ fitted to all GS models, which better isolates the front end, while there are also new coil-spring rates and shock absorber piston shapes, all aimed at reducing NVH through better control. Lexus also says that as part of the GS range update, all models now have a stiffer body with additional laser and spot-welds.

When punished, the 2.0-litre livens up with good response but – like in the RC200t we tested, which has the same engine – it’s more a flow of power rather than a strong surge, and the eight-speed auto changes at 6000rpm where it steps up through gears briskly and quietly. The engine note builds, but even under full load it maintains its smooth composure, never overreaching to become coarse, nor showing signs of struggle.

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It also means that the $75,000 staring price is almost $3K more, too, but Lexus has added more standard equipment that includes its Pre-Collision Safety System and All-Speed Adaptive Cruise Control, with its Auto Emergency Braking able to bring the GS200t to a complete stop from any speed. Yet with the refinement and polish, the 200t won’t have you rushing to get to your destination as it fits the premium brief so well.

But wait, there’s more

THE GS has a tough fight on its hands in 2016 as it faces increasingly tough opposition. The new Mercedes E-Class will arrive, and will take over the role of techno tour-de-force flagship from the German maker’s S-Class. Also keeping Lexus salespeople awake at night will be a new-generation Jaguar XF, which is not only a dynamic dream, but will be far more opulent than its predecessor. The Audi A6 was updated in early 2015, and the fifth generation is expected to be shown in 2016 before arriving here in 2017. An all-new BMW 5 Series is expected then, too.

SPECS Model: 2016 Lexus GS200t Engine: 1998cc 4cyl, dohc, 16v, turbo Max power: 180kW @ 5800rpm Max torque: 350Nm @ 1650-4400rpm Transmission: 8-speed automatic Weight: 1725kg 0-100km/h: 7.3sec (claimed) Fuel economy: 8.0L/100km Price: $75,000 On sale: Now