Toyota has announced that it remains committed to Europe’s important A-segment (small city cars) and will introduce a new model to fill the spot. While no names were mentioned, it has been highly speculated that the model in question will be the successor to the Aygo.

Details are scarce for now, but the company has confirmed that its upcoming model will be the third to be produced on the TNGA-B (GA-B) platform in the region, after the Yaris and Yaris Cross. According to Toyota, the Yaris models and the new A-segment model are expected to being annual production of GA-B-based products to over 500,000 units in Europe.

In an effort to ensure the new A-segment model is affordable, it will feature an internal combustion engine. However, previous reports indicate the possibility of electrification, so a hybrid might also be offered, although a fully electric variant is likely unlikely, given pricing concerns.

“Today, the A-segment is heavily dominated by products featuring internal combustion engines, illustrating that budget is a key consideration – and the market outlook sees this strong mix continuing, especially for customers where financial accessibility is a dominant factor,” Toyota said in its official release.