Toyota Motor Corp is reportedly working on manfauturing and selling small electric sedan, according to a new report from Reuter citing sources closed to the matter.

As part of an ongoing collaboration with BYD, the small sedan will powered by  BYD Co Ltd batteries that will arrive by the end of this year. The bZ3 small sedan will be released for Chinese market only and it is the second model that Toyota co developed with BYD after the bZ4X sport-utility vehicle. bZ4X sport-utility vehicle released in China ealier this year.

The move would fit into automakers ongoing push towards electric cars as whole, despite Toyota insist on  its future on the development of hydrogen fuel cells, with greater use of hybrids in the near term.

Toyota had planned to unveil the bZ3, which uses BYD's less bulky Blade batteries, at the Beijing auto show in April, but the event was cancelled due to the COVID-19 pandemic, the sources told Reuter.

The car is roughly the same size as Toyota's Corolla model but with a bigger back-seat section, the sources said. The bZ3 will be produced in Tianjin that used the same assembly as the bZ4X. bZ3 will priced at roughly 200,000 yuan ($28,000), with annual production capacity of 30,000 vehicles.

Over the pasts , Toyota has quietly become the auto industry’s strongest voice opposing an all-out transition to electric vehicles