A startup in Israel has come up with a foldable car that can contract or expand at will in order to fit into tight parking spaces.

The two-door runabout from City Transformer is a cross between an electric motorbike and a small car on a four-wheeled platform. It slots easily into a motorbike-sized parking lot.

The chassis is foldable which means the car can widen or narrow between 1 metre and a more stable 1.44 metres at the press of a button.

The City Transformer runs on electricity from batteries and has a range of around 150 km between charges. The vehicle can run at up to 45 km/h in narrow form, rising to 90 km/h when expanded.

Chief innovation officer Udi Meridor said the car can be charged up at home and has promised more powerful batteries when the runabout gets past the test stage. The plan is to trial a small fleet in Tel Aviv.

"We want the vehicle to be cheap both to buy and to maintain," Meridor told the Times of Israel internet news website.

"It will be more like a gadget, not expensive and environmentally friendly. The idea is to upgrade the gadget with new features along the way, and not buy a new vehicle every few years,” said Meridor.

Meridor said small foldable cars like the City Transformer were a good way of ensuring personal mobility in cities which are becoming increasingly crowded.

The final prototype of the City Transformer will be rolled out within the next 10 months, said Meridor. Provided 10,000 orders are received, production could start as early as 2020. The City Transformer is expected to sell for around 10,000 dollars.

When the platform is in its wider form the vehicle offers the stability and driving experience of a small car, said Meridor. Various versions are planned, including a drophead and a more rugged edition.