Toyota Motor Corp. said Tuesday it will start demonstration tests of a car-sharing project using ultra-compact electric vehicles in France by the end of 2014.

The three-year project in the city of Grenoble and neighboring municipalities is aimed at utilizing eco-friendly EVs as a means of urban transportation. Toyota will provide about 70 ultra-compact EVs designed for short urban trips, such as between public transportation stations and final destinations.

Toyota and Grenoble, as well as French car-sharing service operator Cite lib and energy provider Electricite de France, signed a memorandum on the project Monday, the automaker said.