Toyota plans to begin production and sale of a small electric car - Beyond Zero (BZ3) - powered by BYD batteries by the end of the year.

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 canceled due to the covid-19 pandemic.

The car is approximately the same size as Toyota's Corolla model, but with a larger rear section.

The price of the bZ3 could be around $28,000, almost 30% below a basic Tesla model, the Model 3.

The bZ3 will be produced in Tianjin at a rate of 30,000 vehicles per year in the same assembly as the bZ4X. The plant is jointly operated by Toyota and one of its two Chinese partners, FAW Group.

The first Beyond Zero (BZ) car - the bZ4X sport utility vehicle - was supposed to hit the market in China earlier this year, but Toyota had the model recalled and suspended production.

Toyota has long advocated a small car that does not compromise on comfort as the best way to popularize electric cars.