BMW has two electric cars in its garage. The Mini E is on a test phase with about 600 units roaming around the streets of the U.S., U.K., and Europe. They also have the ActiveE Concept that took spotlight during the auto show in Detroit last month.

According to BMW top execs, the two cars are just the tip of the iceberg. The carmaker is looking forward to launch their all electric vehicle that is expected to go on full production by the first half of this decade. This new electric vehicle will solely depend on the power stored in a battery pack.

BMW codenamed the development as Project Megacity which was driven by the research that kicked off with their Project i back in 2008.

The Project Megacity will be an EV that uses designs that will be specific for use in congested city streets. According to insiders, the production of the 2014 model might begin by the second half of 2013. The car is set to be assembled in the BMW plant in Leipzig, Germany.

The badge of Megacity will be a sub-brand of BMW. There were also speculations that the carmaker planned to use the Isetta name which was all about their mini cars during the 1950’s.

The details about the Megacity Vehicle is very limited since it is still in the development phase. No one can really tell how small it will be but the company hinted that it will be smaller than the current model of the Honda Fit and will take a form of a 3-door hatchback. The car will be made full or partly of carbon fiber to keep its weight down.

BMW is also collaborating with SB-Limotive for the batteries that will power the 125 kW or 170 hp electric motor.