Toyota launched the most expensive Lexus to date–the LS600hL hybrid luxury sedan–in Japan. Fully loaded, it costs a pricey 15.1 million yen ($126,000) and is easily the most expensive Japanese brand passenger car on the market.

Just as important, it’s also another warning shot to Mercedes Benz and BMW that Toyota is deadly serious about eating away at their share of Japan’s luxury car market.

While Toyota dominates its domestic auto market with over 40% share, European car makers have long been the place to go for wealthy car buyers looking for sophistication. Read more »