The entry-level luxury market is heating up but Lexus has dismissed the idea of a model costing less than $30,000.

The entry-level luxury market is heating up but Lexus has dismissed the idea of a model costing less than $30,000.

Speaking to Automotive News, Lexus U.S. General Manager Jeff Bracken said "We will not head down below $30,000, we have Toyota and Scion to handle that price level for us."

Despite the company's reluctance to introduce cheaper models, Bracken admitted the Mercedes CLA is "off to a great start" and has "brought in some traffic for some of the other series." However, Toyota Motor Sales U.S.A. Senior Vice President Bob Carter told the publication "By not diluting its brand image, Lexus will stay focused" and " hit on higher levels, in segments more traditionally associated with luxury."

As a refresher, the Mercedes CLA starts at $29,900 and will soon be joined by the Audi A3 sedan which also starts at $29,900.

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Lexus won't chase Audi & Mercedes downmarket, future cars will cost more than $30,000