No timeline for mass production has been announced. But the Japanese company aims to develop the system, announced Thursday, into a viable propulsion option for electrics.

Created with Honda Motor joint venture Hitachi Astemo, the new direct-drive system integrates an in-wheel motor, inverter and brake. The simpler drive mechanism slashes energy loss by 30% compared with conventional electric vehicles.

There is also more room for larger batteries that can increase the driving range. And each wheel can be controlled independently, enabling such features as smoother movement when changing lanes.

Electric vehicles with in-wheel motors tend to be heavier than conventional electrics. But Hitachi touts its new system as compact and lightweight.

Other automotive players, such as Nissan Motor, are also developing electric vehicles with in-wheel motors.