TOYOTA is to enter the compact SUV market with a new model based on the latest Yaris platform.
The name of the new model, volume plans and the timing of its introduction will be announced at a future date.
The announcement was made at a showcase event in Amsterdam where a stylised silhouette of the future car was shown.
The flexibility of the new Toyota GA-B platform - also used for the new Yaris range which is to be built at Toyota's factory in Valenciennes in norther France - allows it to support vehicles of different widths, heights and wheelbase lengths.
Matthew Harrison, Toyota Motor Europe executive vice president, said: "This model will add to the success of Yaris in Europe and together we expect these vehicles will account for around 30 per cent of the Toyota sales volume in the region by 2025."
He said that although based on the Yaris underpinnings the SUV wold be a completely new model with its own design.