Toyota Motor will form a joint marketing firm with China's largest car maker and become the first foreign car company to build a national sales network there, a Japanese business daily reported on Sunday, according to Reuters.

Toyota has agreed with China's First Automotive Works (FAW) to establish a joint business to sell cars made by the two firms' joint ventures in China, the Nihon Keizai Shimbun (Nikkei) said, according to the news agency.

Nikkei reportedly said the move was expected to increase efficiency for the joint ventures, which had been selling cars separately and the joint sales were part of Toyota's drive to capture 10% of the Chinese market by 2010, and to double its annual output in China to more than 200,000 vehicles.

Reuters said the paper reported the two car makers planned to set up an equally owned sales firm by the end of the year and double the number of sales outlets to more than 100.

Toyota makes the Vios compact sedan through a joint venture with FAW, and plans to produce the Corolla in the spring of 2004, the reports added.