For its next generation commuter car Toyota says it will do away with the gas engine entirely, announcing plans to build a purely electric rechargeable plug-in in the early 2010. In the midst of the prevailing energy crisis a low-cost EV is just what the green doctor ordered and would arrive just in time to vie with the Mitsubishi iMiEV abroad and the upcoming Chevy Volt here at home.

The initial development of the small EV, likely to be mass-produced alongside the plug-in Prius, is already underway. Toyota is currently testing its next-generation Li-ion battery technology using the automaker's E-Com electric minicars. According to Edmunds Green Car Advisor, the estimated range for existing test fleets tops out at 10 miles per charge. However, these are early days and the company plans to boost that figure to match that of the Chevy Volt which GM says will be able to travel 40 miles on batteries alone.

"We'll be studying the range, but think we'll need more than that for a consumer version,'' said Toyota spokesman John Hanson. "Non-consumer fleets'' such as utilities will use the test vehicles, he added.

Though far from certain, Toyota may exploit its recently introduced iQ Concept as a platform for the electric microcar's consumer variant. The iQ is already on track for mass production and is expected to be a hit in both Europe and Japan.