Shanghai-General Motors is preparing to launch a cheap combination vehicle targeting farmers in China under a new agreement leaked to the Wall Street Journal.

According to the WSJ report, Shanghai Automotive will license GM technology to build the pick-up delivery truck, based on the US auto giant's German-designed Corsa Combo.

To be sold under the Shanghai Auto brand for around $US7,000, production of the 'Farmer's Car' is more than a year away.

Shanghai Auto and GM are hoping the truck will appeal to 800 million rural inhabitants, largely ignored by foreign joint-venture auto-makers because of their low incomes.