According to reports, Toyota is planning to introduce a low-priced small car designed for the Chinese market as early as 2013, with production planned at two factories in the country.

The new car is likely to be based on the its existing small sedan designs, led by the Etios, which made its debut in India last December. While the company intends to keep costs down by using Etios parts, the new vehicle – to be powered by a 1.5 litre engine – is to be slightly larger than the Etios to accomodate preferences in the Chinese market.

The reports add that Toyota is set to spend about 40 billion yen in preparation for local production of the car, which it aims to sell around 200,000 units a year of. Two factories, joint venture plants in Tianjin with China FAW and in Guangzhou with Guangzhou Automobile, will churn out the new tyke when the time comes.