General Motors' Opel brand will start selling an all-electric compact vehicle by 2017, according to a report by Reuters.
The report cited Automobilwoche magazine.
The automaker is attempting to meet EU emission targets, which most likely explains its decision to introduce the all-electric vehicle.
Opel's new vehicle has been called BEV, which stands for "battery electric vehicle," according to the report.
The vehicle will be a cheaper and smaller option that the 38,300-euro ($52,400) Ampera electric vehicle, according the magazine.
Opel announced last September that the Ampera's price would be reduced by almost 8,000 euro's in Europe's biggest car market for the vehicle.
The Ampera can travel around 40-80 kilometers electrically and a 500 km more with a combustion engine range extender, according to Reuters.
Opel has yet to comment publicly on the decision yet.
The GM division's new electric vehicle will likely be launched as part of a small-car initiative, which in 2015 could bring to the market a new vehicle called "City," according to Reuters.
The City is expected to be sold for under 10,000 euros, which would help it rival Volkswagen's Up vehicle according to the magazine.
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