Europe's largest carmaker, Volkswagen, is planning to build around half a million units a year of its planned cut-price car model, according to a German magazine.
Quoting top VW executives, Manager Magazin said the group's executive board was due to give the green light for the "budget car" project withina few weeks, paving the way for final approval by VW's board.
A VW company spokesman declined to comment on the Hamburg magazine's report.
Presenting VW's annual results a few weeks ago, VW chief Martin Winterkorn said the project was "on the last lap".
The report said the budget car would be sold under a new brand name, joining the 13 marques which make up the VW Group. The budget car would carry a price tag equivalent to €7500 ($11,863).
The car will go on sale first in China at the end of 2016 or beginning of 2017 and be built there with a business partner. The budget car may later be marketed in India and Southeast Asia. There are no plans to sell the vehicle in Europe.
The European cut-price sector is dominated by Renault's budget brand Dacia and by Suzuki of Japan.
