According to Autocar, The Geely IG would cost between £1500 and £2000 (NZ$3100-4100), undercutting the Tata Nano, which sells for around £2500 (NZ$5100).
Geely, which recently bought Volvo from Ford, also claims that the IG (Intelligent Geely) will be better quality than the Nano.
The IG is 185mm longer than the Toyota iQ and sits on a 100mm longer wheelbase. It is billed as a 2+2, with limited rear space.
Rumours suggest the concept’s gullwing doors will be removed in favour of a more conventional design.
“The concept has had a very positive reaction, and with the car not launching until 2012 there is time for us to expand our network before then,” said a Geely spokesman.
The Chinese version of the IG will be powered by a 988cc petrol engine developing 70bhp and 69lb ft and driving the front wheels through a five-speed CVT gearbox.
The electric version will follow around 2014 or 2015, featuring a lithium ion battery, an 80bhp/133lb ft electric motor. The concept has solar panels on the roof, bonnet and dash to help increase its range.
The IG is set to be built at Geely’s Linhai base.