Toyota Motor Corp has partnered with local Chinese company BYD to manufacture an all-new electric sedan that offers both comfort and affordability.

As reported by Reuters, the new vehicle is described as an “electric holy grail” for Toyota as the company has been attempting to develop a small-sized EV that’s both affordable and comfortable.

BYD, or Build Your Dreams, had barely a reputation outside of China but was given the spotlight when billionaire Warren Buffet bought a 10% stake in 2008. The company is now one of the biggest manufacturers of “new energy vehicles” in the world.

Working with Toyota, the two companies aim to manufacture an all-new electric vehicle that will be modeled after the Corolla but will reportedly have a bigger back seat section and a slightly bigger frame overall. It’s set to debut as a concept car at the Beijing Auto Show next April of next year.

It’s also expected that Toyota will launch its new series of electric cars, the bZ series, during this time though it will also most likely be exclusive for the Chinese market as well.

As for its price, it’s not expected to be as expensive as Tesla’s Model Y (starts at US$ 58,990) but will also not be as cheap as China’s best-selling EV, the Hong Guang Mini EV (US$ 4,500).

Sources say it may sell for under 200,000 Yuan (US$ 30,000).

One of Reuters’ sources says that Toyota’s upcoming EV will be “enabled by BYD battery technology” and will help the company attain its goal of offering a small but roomy electric vehicle that’s also competitively priced. The battery mentioned is, in fact, BYD’s own lithium-ion-phosphate (LFP) Blade batteries that are less bulky than usual.

The move to create a compact sedan for the Chinese market is also a strategic one as Tesla is expected to enter its own small-sized EVs within the next two years.