All-new Toyota Aygo replacement previewed

Toyota has confirmed it will replace the entry-level Toyota Aygo city car it sells in Europe with an all-new model based on the Toyota Yaris' TNGA-B platform.

The current Toyota Aygo was created as part of an alliance with PSA Group that spun off both the Peugeot 108 and Citroen C1.

All three shared an engine and transmission and only featured minor body changes.

For 2021 that relationship has ended, says Toyota, with its Kia Picanto-rivalling hatch set to be closely related to the 2021 Toyota Yaris supermini for its third generation.

Set to offer more space than the previous two generations, Toyota has released pictures of its advanced TNGA-B platform upon which the latest European Car of the Year is built.

However, the Japanese auto giant said the Aygo replacement will miss out on electrified powertrains, meaning there will be no hybrid or pure-electric version.

It's thought Toyota bosses in Europe are keen that the small hatch remains priced comfortably under $20,000.

Despite the modest price tag, the Toyota city car will keep its trademark optional fabric retractable roof, upright tail-light clusters and wheel-at-each-corner look.

What does change is engineers will give the Aygo a raised ride height and some faux protective cladding to try and cash in on buyers' love for all things SUV.

Under the bonnet the Aygo is likely to be powered by a 1.0-litre three-cylinder petrol engine that will be combined with either a five-speed manual or CVT automatic.

A small hatch powered only by a combustion engine is becoming a rarity in its segment, with both Citroen and Peugeot unlikely to replace the C1 and 108, while Ford no longer has a city car in its line-up.

The withdrawal from the city car segment is because of their high cost of development and small profit margin, plus the impact on fleet average CO2 emissions.

Toyota, on the other hand, has eco models such as the Toyota Prius, Corolla and RAV4 hybrids that help it comfortably meet its EU-mandated targets, so it can afford to launch a new city car.

Set to be continued to be built at the same plant in the Czech Republic, it's almost certain the Aygo will again be ruled out for Australia due to concerns over high pricing for our market and the limited demand for tiny hatchbacks.

In Europe, the Aygo is expected to be launched later in 2021.