MUNICH, GERMANY --- During BMW Group's annual accounts press conference last week, Chairman Norbert Reithofer said the company plans to produce a new vehicle, called the Megacity, with full electric and gasoline drivetrains. 

The Megacity will be the second offering from the company's "Project i" initiative. 

Project i is a group developing eco-friendly city cars. The group's first offering was the Mini E, now undergoing testing in California, New York and New Jersey.

"The second specific result of Project i will be our Megacity vehicle," Reithofer said. "This vehicle will be the first of a range of near-zero-emission vehicles. Customers will have the choice between a fully electric drive and a high-efficiency combustion engine. Large-scale production could start in the first half of the next decade."