Toyota Motor Corp, Daihatsu Motor Co, and Suzuki Motor Corp unveiled a micro-sized electric van on Thursday, targeting Japan’s delivery industry.

The van, which will be available in Toyota, Daihatsu, and Suzuki-branded versions, will have a range of about 200 kilometers (124 miles) on a single charge and is slated to be released by the end of the current financial year running to March 31, 2024.

Daihatsu, which became a Toyota subsidiary in 2016, will produce the vehicles.

The van will be classed as a “kei” vehicle, which are low-powered, low-taxed domestic fare. Micro kei vehicles are hugely popular among businesses and households to deliver agriculture produce, parcels and other goods in urban areas and the countryside in Japan, in part due to their relatively cheap price.

Kei models accounted for 40% of 78.8 million four-wheel vehicles owned in Japan at the end of February, showed the latest transport ministry data.

Reducing emissions has been a key issue at this year’s G7 meeting, which is being held in Hiroshima, Japan. The roll-out by Toyota and its partners comes as other automakers in Japan are expanding their lineups with electric mini-commercial vans.

Honda Motor Co Ltd said in December it would start selling a micro-sized commercial electric van with a target cruising range of 200km in spring 2024, as part of its effort to electrify its vehicle lineup.

Mitsubishi Motors Corp in November re-launched its own small commercial van, Minicab-MiEV, which has a shorter cruising range of 133 km. Mitsubishi will also start producing the van in Indonesia in 2024, it said in February, as it seeks to build out the vehicle’s sales across geographies.

Japanese delivery giant Sagawa Express Co has previously said it planned to start replacing all 7,200 of its commercial mini-vehicles with electric vehicles supplied by China’s Guangxi Automobile Group from last September onwards. The company declined to comment when asked on Thursday whether it had started the process.

The launch of the new electric van is a sign of the growing momentum behind electrification in Japan’s automotive industry. With the G7 summit taking place in Hiroshima, the focus on reducing emissions is likely to give further impetus to the shift to electric vehicles.

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