Renault forecasts global car market will exceed 100 million units by 2020 image

Renault expects the global auto market to grow by almost 30 percent by 2020, despite Europe’s current stagnation, COO Carlos Tavares said.

Renault’s chief operating officer told journalists he expected the global market to exceed 100 million vehicles in 2020, compared with 78 million units sold last year. “There is no reason to be desperate about the car market, there is a very large growth potential, but we have to be able to follow the changes, especially geographic,” Tavares added.

Like other carmakers dependend on sales in Europe, Renault is trying to enter fast-growing emerging markets, where demand remains stronger, with cheaper models. The French carmaker already expects to make half of sales outside Europe this year.

As part of its expansion strategy, Renault plans to unveil in early 2013 a low-cost car which will be made in Chennai, India, and will cost around $6,400 (roughly €5,000), according to news website. The car will be developed with Japanese partner Nissan and is expected to be launched at the end of 2014, the website said. However, it will not be sold in Europe.

At the same time, Renault and Nissan are working on an even cheaper vehicle, which will be priced at around $3,800 (€3,000) and will rival the Tata Nano in India.