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Daihatsu Motor Co. has set a goal of having all of the new automobiles it sells in Japan to be fully electrified or hybrid vehicles by 2030.

The subsidiary of Toyota Motor Corp. also plans to launch its first electric minivehicle by 2025. It aims to set the purchase price for the vehicle, after the application of related subsidies or other factors, at ¥1 million or higher but less than ¥2 million.

The decision marks the first time Daihatsu, the top Japanese manufacturer of minivehicles with engine displacements of up to 660 cc, has issued a firm electrification plan.

The announcement is likely to accelerate the race to develop electric models of minivehicles, which account for 40% of all new vehicle sales in Japan.

“We cannot avoid electrification and we have to work on it,” Daihatsu President Soichiro Okudaira said at an event in Tokyo on Monday to announce a new model vehicle.

Ahead of the release of the electric minivehicle, Daihatsu plans to launch a hybrid minivehicle.

“We’ll utilize the advantages of hybrid vehicles in developing electric vehicles and launch them,” Okudaira said.

Nissan Motor Co. and Mitsubishi Motors Corp. are jointly developing an electric minivehicle and plan to release it in early fiscal 2022, which starts next April. Honda Motor Co. and Suzuki Motor Corp. also plan to release their own electric minivehicles.

On Monday, Daihatsu launched a new model Hijet Cargo van. The full remodel was the commercial minivehicle’s first in some 17 years for. It is priced between ¥1,045,000 and ¥1,606,000.

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