Toyota to take on Smart

Rumour has it that Toyota is planning a small, cheap city car to rival the Smart ForTwo, and it could be on the road within the next 18 months.

This is in spite of the fact that Smart owners DaimlerChrysler had to work very hard indeed to keep the business case for Smart alive last year. The French-based micro-car builder had to dump its slow-selling ForFour and Roadster models, and abandon plans for a ForMore small SUV. The two-seat ForTwo city car is the last Smart standing.

But Toyota, like DaimlerChrysler, realises that the demand for small, CO2-efficient urban runarounds is likely to grow. According to insiders, the new city car would be based around the architecture of the Endo concept (above) and feature 3+1 seating; in other words, decent space for three adults (two up front, one in the back) with occasional space for a fourth. All seats would be adjustable to allow owners to juggle the available space for passengers or luggage, unlike the Smart which seats strictly two.

It's likely that the new car would share major components with the Yaris and Aygo, to keep the base price down to around the €10,000, although that could fall if the expected sub-100g/km CO2 rating earned it a discount on VRT when Irish car taxation rules change. Like Smart, there will probably be much scope for modifying and personalising the car.

If the Toyota board gives it the go-ahead, production and sales could start as early as 2009.