Toyota planning new challenge to 'cheap car' Tata Nano

Since the announcement of the first production plans for the Tata Nano, the auto industry has remained abuzz about the minimalist vehicle known as the world’s cheapest car. After months of controversy and delivery delays, the Nano is now being sold in India and Tata has plans to export the $2,000 car to other countries.

Several other manufacturers make cars that cost less than $10,000. And Toyota now says it will join the “cheap” car market. It plans to release a concept car  it will target to the world’s emerging markets.

The concept model’s name is EFC. It stands for Entry Family Car. Toyota has not announced pricing for the car, nor many of its details. But the expected price is substantially less than $10,000.

Toyota plans to manufacture the car at a plant in India starting in late 2010 and in Brazil reportedly in early 2011.

The EFC will be unveiled at the New Delhi Auto Show in January, and the car is expected be sold initial in India, Russia and Latin America.