Despite being an all-conquering force in the global automotive scene Toyota surely took its time to reply to the gauntlets laid down by the Audi Q5 and BMW X3. The Japanese powerhouse has been ruffling German feathers for as long as the Lexus brand has existed – longer if you deem the Toyota Crown a worthy luxo-barge – but the compact continental crossovers enjoyed a playground to themselves once the Lexus RX grew fat as it developed an appetite for bigger engines.

Sadly for them, playtime is over.

Lexus plans to reclaim its sandbox with a trimmer SUV on a stricter dietary plan, and it's called the NX. The baby RX, which Lexus really should have rolled out some years ago, will go down in the company's history books for what lies underneath its hood. The new, two-litre 8AR-FTS engine powering the NX 200t represents Lexus's first embrace of forced induction.

Unlike most manufacturers, Lexus's twinscroll turbocharger is built in-house rather than outsourced. This is only fitting for an engine that will undoubtedly be tasked to propel future Toyota models as well. But let's not get carried away with Corolla TSIs. With a maximum 17psi (1.17bar) of boost on a wide open throttle, the new powerplant develops up to 235bhp and 350Nm of torque. More interestingly, the valve control system is able to swap between Atkinson and Otto cycles, depending on driving conditions, for optimum fuel efficiency.

It's a very sophisticated engine for an equally sophisticated crossover, which is why Lexus's choice of transmission for the NX 200t, a 6-speed conventional auto, fails to excite. German rivals are offering advanced 8-speeders and fancy dual-clutch transmissions, while a 9-speed gearbox can be had for another 20-odd grand in the form of the Range Rover Evoque. Another RM20k will get you past the Stuttgart border.

Yes, there are now little Range Rovers and Porsche Macans to worry about in this segment, and the Lexus still holds its own very well in that respect, visually at least. Beauty may be in the eye of the beholder but it is hard to play down the drama imposed by the gaping spindle grille which shouts "get out of my way or I'll eat you", 18-inch gunmetal alloys and electric blue paintjob exclusive to the F-Sport variant tested here. But is it all a disguise to mask unfulfilled sporty aspirations like some of Lexus's past F-Sport models that failed to convince?

Well, not entirely.

The gearbox is unsurprisingly slower to react than industry benchmarks even with the paddleshifts engaged, but the new turbocharged engine is quick to compensate after every delayed gearshift. Maximum torque gushes in from 1,450rpm, giving the NX 200t plenty of low-end torque, unheard of in the naturally aspirated units of the IS and GS, without sacrificing the refinement and linearity of the latter engines as the revs build up. The turbo mill is smooth, relatively lag-free, properly quick when pushed, and very quiet too.

To further improve the NX's NVH performance, Lexus has gone to great lengths to keep the steering rack vibration free. It works, but it seems that communicativeness has followed the vibrations out of the window. The unintuitive steering is a frustrating drawback given the F-Sport's inclusion of Adaptive Variable Suspension which evidently prioritises spirited driving over soccer mom routines. The damping rates are adjustable – the absorbers have up to 30 damping control levels – but the ride always leans on the stiff side no matter what the setting (Eco, Normal, Sport or Sport+).

Since it's hard to imagine the NX's fancy footwear and racy absorbers getting tangled up in mud and loose foliage, Lexus's Dynamic Torque Control AWD system operates primarily as a FWD under normal driving circumstances. When necessary, the rear differential will send up to 50 percent of available torque to the rear. The concept is hard to fault but occasional delays in its execution make it possible to experience momentary bouts of understeer while barrelling down twisty B-roads.

The dignified Lexus driver, however, isn't expected to exert the NX to its limits, which are by no means restrictive. There is still plenty to enjoy from behind the wheel of the highly-specced F-Sport for those who prefer to feather the throttle than stab at it. The cabin's build quality is superb, not that you'd expect anything less from a Lexus, and the features that grace it are even more impressive.

The ventilated, red leather seats are comfortable and work in tandem with the 14-speaker Mark Levinson audio system to halve the dreariness of rush-hour crawls. Detailed appointments such as the touch-sensitive dome lights and vanity mirror hidden in the centre console will keep the ladies happy. Tech geeks will be equally pleased by Lexus's new Remote Touch Interface used to interact with the seven-inch screen which also displays the Surround View Monitor, and the Qi charging tray in the armrest compartment capable of juicing up compatible smartphones wirelessly.

Curiously, Lexus opted against subjecting the NX 200t's engine to a stop-start function for the Malaysian market. It defies industrial norms but reduces the number of driving distractions by one. Also left out of the F-Sport variant is the electrical adjustment feature for the rear seats found in the cheaper Premium and Luxury variants. Not that any passenger who isn't a Lexus salesman would notice.

The NX 200t, then, isn't quite the perfect luxury compact SUV it promised to be. The turbocharged four-banger is quite a revelation and the accompanying AWD-on-demand system is clever but their exploits are countered by minor weaknesses in the steering, suspension and transmission. Shift the focus away from driveability, the core selling point of its European rivals, and the NX shines with impressive attention to detail, build quality and technology. The sharp, F-Sport suit is the icing on the cake which gives the NX a distinctive touch of desirability. And the bookings are flooding in as we speak.

SPECS
Engine: 1,998cc 4-cylinder twinscroll turbo, 235bhp, 350Nm, 6-speed auto AWD
Performance: 0-100kph in 7.1secs
Weight: 1,860kg
Price: RM362,462 OTR w/o insurance