Renault and Nissan to build Tata Nano rival in India, priced at €3,000 image

Renault plans to launch two low-cost vehicles for emerging markets, including a Tata Nano rival, French news website reports.

The first of the two new models will be developed together with alliance partner Nissan and will cost around 5,000 euros ($6,400) when it will reach the market at the end of 2014. The second new model, priced at around 3,000 euros ($3,900), will be designed by Renault-Nissan to rival the Tata Nano on its Indian home market, wrote. Both models will be built in Chennai, India, and are not destined for European markets.

Asked about the company’s progress on this project, Renault’s chief operating officer Carlos Tavares said nothing had yet been finalized. “When the project has been officially decided… we will make an announcement,” he said, adding that the carmaker is continuing to work on it. The two low-cost cars were requested by Renault and Nissan CEO Carlos Ghosn, who has said the group need to have cheaper models than its current Dacia range in its lineup in order to respond to emerging-market demand.

Renault is trying to enter fast-growing emerging markets where demand remains strong, especially for cheaper models. The carmaker expects to make half of sales outside Europe this year, well ahead of the target set for 2016.