Renault developing two low cost cars

French website La Tribune has reported that Renault is developing two low priced cars in the price range of $3000 to $5000. The car rumoured to be priced at $3000 will compete with world’s cheapest car ‘Tata Nano’ and other model with $5000 price tag which will have ARAI economy figures of 24-26 Kmpl will rival Maruti 800 Alto and Hyundai Eon.

Both these cars will be manufactured in association with Nissan and will be built in India. These cars will have no plans to go to Europe as they are developed exclusively for emerging markets.

Renault and Nissan had JV with Bajaj Auto to develop an Ultra Low Cost car. Bajaj Auto came up with RE60, which was actually a low cost 4 wheeler and not exactly a car, made Renault and Nissan to discontinue the JV and work themselves on a new low cost car platform. These low cost cars are likely to come by late 2014.