With rivals investing in city cars, Fiat has decided to follow suit.

While details are limited, Autocar is reporting the company is developing an entry-level hybrid powertrain. It will feature a turbocharged 900cc (0.9-liter) TwinAir two-cylinder petrol engine and a hybridized dual-clutch transmission. The latter will have a small electric motor located inside it, which will power the vehicle at low speeds. Thanks to this system, the car would have C02 emissions of just 80 g/km.

As you may recall, our spies have previously spotted a prototype of the Topolino city car. Set to be a competitor to the Smart ForTwo, Toyota iQ and Volkswagen Up!, the Topolino would likely measure 3.20 meters (10.5 feet) long.

Gallery: Fiat working on 80g/km hybrid city car

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