Toyota is poised to launch a Corolla-sized electric sedan that costs just $28,000, according to a new report from Reuters.

But before you get too excited, here’s the snag: the small four-door EV, which is due to enter production before the end of the year, is a China-only product, at least initially.

Expected to wear the bZ3 badge, the little brother to the bZ4X electric SUV and only the second vehicle from Toyota’s “beyond-zero” EV program is the result of a tie-up with Chinese automaker BYD who will supply its Blade lithium batteries that are reported to be up to 4 inches (100 mm) slimmer than conventional battery packs and make fitting them into a conventional sedan shape car possible. Intel from those close to the project in China say that the new car will be built at a Tianjin plant jointly operated by Toyota and China’s FAW Group, which could produce 30,000 units per year.

Though Toyota has yet to officially acknowledge the project, let alone put a sticker price on the finished product, one of Reuters’ sources suggested it would sell for roughly ¥200,000, which equates to just $28,000. Tesla’s Chinese retail website says the cheapest Model 3 available in the country currently cost ¥279,000 ($38,665).

Related: Toyota Gives Recalled BZX4 Owners That Can’t Drive Their Cars The Option To Buy Back Their EVs

Toyota bZ3 could undercut Tesla Model 3 by $10k in China

The news outlet’s sources claim Toyota had originally planned to reveal the compact sedan in April at the Beijing Auto Show, but was forced to change its plans when the event was cancelled due to the Covid pandemic. And those same sources told reporters that while the bZ3 would be approximately the same size as a Toyota Corolla on the outside, it would offer extra rear seat space.

Could the bZ3 come to U.S? A Toyota EV that undercut America’s $46,990 entry level Tesla Model 3 by more than $10k would be a smash hit, but that figure doesn’t take account of the tax credits available to Tesla buyers which wouldn’t be available to buyers of the bZ3 because it is made outside North America. Would you like to see Toyota take on Tesla with a bZ3 in the U.S?

Late last year, Toyota and Lexus showed off a ton of future EV concepts, though it’s not clear if any of these are destined for the Chinese market