Toyota is planning an ultra-low cost vehicle for sale in emerging markets, which would sell for less than Renault's Logan budget car. Toyota president Katsuaki Watanabe has told reporters "the focus will be on low-cost technology," something that will require a reform of current design and production methods.

There’s been no confirmation of the cost of the new vehicle but according to Watanabe, it would be less than the Logan, which has already gone into production and is expected to start at €5,000. To meet these new cost standards, "everything from design to production methods will be radically changed and we are thinking of a really ultra-low-cost way of designing, using ultra-low-cost materials, even developing new materials if necessary," said Watanabe.

The outcome is likely to hurt the already struggling US automakers, and help push Toyota into new markets. Pictured above is Toyota’s Endo concept developed at Toyota’s European design studios. Designed as a cheap city runabout, the Endo features styling elements that are likely to feature on Toyota’s upcoming budget model.