Neither Peugeot nor Citroen will replace the 108 and C1 minicars, respectively, sources at the company said last October.
LMC predicts Renault will leave the sector at the end of its partnership with Smart to build the Twingo.
Meanwhile, VW Group has said it will shift its focus from minicars to the small SUV segment when it launches its next budget EV.
The car will be built by Seat starting in 2025 for the VW, Skoda and Audi brands. The new model will be roughly the size of the Seat Arona small SUV.
The likely exit of Peugeot and Citroen, Toyota’s partners in development and production of the current Aygo, make Toyota’s decision to launch a new combustion engine model into the sector more surprising.
The Japanese brand bought out the joint venture plant in Kolin, Czech Republic, and developed its own model, which was previewed by the Aygo X Prologue concept in March.
The chunky design, with big 19-inch wheels, points to an SUV-inspired look for the production version of the new Aygo, which is due in 2022. The minicar will be built on the same platform as the Yaris small car, bringing economies of scale, the company said.
Toyota has repeatedly said it sees benefit from continuing to offer the Aygo, Europe’s No. 3-selling minicar in the first two months, because it acts as an entry point for younger customers into the brand. Toyota didn’t say whether it would use the Yaris’s full-hybrid drivetrain in the new Aygo, a move that would cut CO2 but increase the car’s price.