Italian scooter maker Piaggio is developing a low-cost three-seat city-car that could hit the roads by late-2013.

Called the NT3, the Piaggio concept was conceived in India, where it would battle the Tata Nano and the to-be-launched Hyundai Ha – an 800cc Rs 2- 3lakh small car – and a new sub-600cc Maruti, code named YE3.

A concept of the four-wheel design, with a similar theme to the Smart Fortwo, has been revealed at the Milan Motorcycle Show. The three-seat cabin features a central, front driving position and twin rear seats, just like the McLaren F1 and BMW’s 1994 concept, the Z13, also based around ‘bike running gear.

 The NT3 is based around Piaggio’s three-wheel Ape, its classic three-wheel commercial pick-up and van, which is popular in southern Europe and emerging markets like India. The engine choices in the concept are 200cc or 300cc ‘bike engines, the 300cc also mated to a hybrid system.

Piaggio boss Roberto Colannino told Reuters that he had “very big sales numbers in mind for India” and that sales are also planned for “Asia and Europe”. No factory location or sales launch dates were revealed, although Piaggio is planning to start production “within three years.”