Three people close to the Japanese carmaker said Toyota Motor Corp plans to start production and sales of a small electric sedan powered by BYD Co Ltd batteries by the end of the year, as part of an ongoing collaboration with the Chinese company.
The China-only bZ 3 sedan developed with BYD will be the second model in the new Beyond Zero bZ series of battery electric vehicles BEVs from Toyota, which has been criticised by activists and green investors for not embracing BEVs fast enough.
The first bZ car -- the bZ 4 X sport-utility vehicle -- was due to hit the market in China earlier this year, but a recall of the car forced Toyota to suspend production of the model globally.
Toyota had planned to unveil the bZ 3, which uses BYD's less bulky Blade batteries, at the Beijing auto show in April, but the event was cancelled because of the COVID- 19 Pandemic, according to the sources. They didn't say anything because the plan is not public yet.
The car is about the same size as Toyota's Corolla model, but it has a larger back-seat section, according to the sources.
One of the sources said it would likely sell for around 200,000 yuan $28,000, nearly 30% less than an entry-level Tesla Inc Model 3.
Two of the sources said that the bZ 3 will be produced in Tianjin at a pace of 30,000 vehicles a year on the same assembly as the bZ 4 X. The plant is jointly operated by Toyota and one of its two Chinese partners, FAW Group.
The bZ 3 isn't going to be produced by Toyota's other joint venture with GAC Motor, according to three sources.
Toyota has long advocated for a small car that doesn't compromise on comfort as the best way to popularise BEVs, but it has struggled to produce one.
The need to stack bulky batteries under the floor has eaten up interior space unless the roof is raised, which is why many EVs are taller SUVs.
The bZ 3's smaller sedan configuration has made it feasible chiefly because of BYD's thinner lithium-iron phosphate LFP Blade battery technology.
One source said a typical Blade pack is about 10 centimeters 3.9 inches thick when the modules are laid flat on the floor, about 5 cm to 10 cm thinner than other lithium-ion packs.