Despite many manufacturers stopping producing city cars due to falling demand, Toyota is committing to this affordable segment by announcing it will introduce a new generation model.

Called the ‘A-segment’, Toyota currently sells its Aygo in this market – an affordable model that’s produced alongside the Citroen C1 and Peugeot 108. But with the French manufacturers yet to confirm their city car plans, Toyota looks to be cutting ties with the announcement of a new model, and is set to retain the production plant in the Czech Republic where the trio of models are currently produced.

While it’s not yet known if the Aygo name will remain, the new city car will be the most affordable model in the Japanese firm’s range, and will not be offered with Toyota’s popular hybrid powertrains, but rather just combustion engines.

The manufacturer says this will “help keep the model accessible to customers”. Toyota says that the popularity of combustion engines in this segment is also likely to continue for the years ahead.

It will be produced on the firm’s GA-B platform, which underpins the latest Yaris and upcoming Yaris Cross SUV. With the platform bringing welcome driving and safety improvements to the Yaris, it’s hoped the new city car will benefit, too.

Few details on the new model have been confirmed, though it’s expected to retain a starting price of around £12,500 and is expected to arrive in 2022.