Vic treasurer defends luxury Lexus car

Victorian Treasurer Tim Pallas has defended his chauffer-driven hybrid Lexus ministerial car, insisting it's better value for taxpayers.

Mr Pallas's new car is a Lexus ES300 hybrid, with a base price of about $67,000, for which he secured a special exemption to purchase.

"Yes this is slightly more expensive to buy, but the cost of purchase of this hybrid vehicle makes up for itself very quickly by comparison to the running costs of a gas guzzler from Germany," Mr Pallas told reporters on Thursday.

"I sought the exemption because it might well save the taxpayer considerably in the long term."

Mr Pallas came under scrutiny for the car during question time on Wednesday, after the government's move last month to increase tax on high-end luxury vehicles.

The treasurer said the government is changing its procurement policy on vehicles because there a no longer any Australian-made cars.