Toyota is reportedly planning to produce low-priced cars for emerging markets in China and Thailand starting in 2012.

The Nikkan Kogyo Shimbun said that Toyota is aiming for annual output of 150,000 units of its so-called 'Entry Family Car.'

Demand for low-priced, small cars in emerging nations such as China, India and Brazil is expected to grow in the coming years and Toyota is aiming to cash in on this trend, the paper noted.

Toyota is planning to consolidate small car platforms and rework its profit structure so that it can earn higher profits on small models.

This process will also enable the company to aggressively cultivate demand in emerging markets, Toyota believes.

A Thai-produced car could also be eligible for tax breaks under the Thailand Government's 'eco-car' incentives.

JAPAN: Toyota plans to make small cars more profitable