Renault and Nissan plan €3,000 city car to take on Tata Nano in India
Renault and Nissan are developing a budget car for the Indian market, targeting a €3,000 price point to compete directly with the Tata Nano, with production set for Chennai.
Renault and Nissan are preparing to launch an ultra-low-cost car for the Indian market, aiming for a starting price of around €3,000 to compete directly with the Tata Nano. The project, reported by French business media, is part of the alliance’s strategy to expand in emerging markets with models priced well below the current Dacia range.
The alliance intends to build the new model at its Chennai facility, where both Renault and Nissan already have established operations. According to reports, the €3,000 car will be the second of two new low-cost vehicles developed by the partnership for emerging markets. The first, expected to cost around €5,000, is also planned for production in India.
Both cars are aimed squarely at markets where cost is a primary concern for buyers. The €3,000 model is being designed specifically to take on the Tata Nano, which has defined the ultra-budget segment in India since its launch. Renault-Nissan’s entry is expected to offer basic transport with minimal frills, targeting first-time buyers and those upgrading from two-wheelers.
Emerging market focus
Renault’s leadership has made clear that growth in emerging markets is a priority, with an expectation that half of its sales would come from outside Europe this year, well ahead of earlier targets. Chief operating officer Carlos Tavares confirmed that work on the low-cost project is ongoing, but final decisions had not yet been made at the time of the report. He indicated that a formal announcement would follow once the project is approved.
The push for a car below the Dacia price point comes from Renault-Nissan CEO Carlos Ghosn, who has argued that the alliance needs to offer cheaper models to meet demand in markets like India, where affordability is crucial for volume growth.
Production and timing
If approved, both new models will be produced at the Renault-Nissan plant in Chennai. The €3,000 car is scheduled for launch at the end of 2014, though as of late 2012, the project remained under internal review. Renault and Nissan have not released technical specifications or further details on the platform, but the focus is understood to be on maximising affordability and keeping running costs low.
- Ultra-low-cost segment targeted for growth in India
- Production leverages existing Chennai facility
- Focus on first-time buyers and two-wheeler upgraders
No plans for Europe
Renault and Nissan have no intention of offering the €3,000 car in Europe, where safety and emissions regulations would make such a price point unfeasible. The new models are designed exclusively for emerging markets, where demand for basic, affordable personal transport is still rising.
