Renault in tie-up with Nissan recently announced that they were developing an ultra low cost car. As per rumours, the car may cost between Rs.2 and 2.5 lakh. The car is expected to be run by an 800 cc engine and will have less expensive components.
â€œIn the emerging markets, like India there is growing potential for car makersâ€ said CEO of Renault, Carlos Tavares. The demand of low cost cars are increasing day by day, especially in India. Though Renaultâ€™s second largest market is Europe, they aimed to sell car outside Europe. The car sale is forceful for slow sales. So they focused on producing smaller and cheaper cars.
There is good competition in small car market in India. So we can expect new small cars with better quality and cheaper price. The very first major project that reached India was TATA's Nano. The car features a 624 cc engine, which has a capacity to produce a power up to 38 bhp. Nano costs Rs. 2 lakh in India and $38000 in USA. The car has an image as the 'Car of the Poor'. But Ratan Tata's world's cheapest car had failed to achieve the target what aimed by the company. Tata is producing most cars in this line.
The Renault-Nissan's car is to be manufactured in Chennai and is expected to be unveiled in the next year. By launching the new car, Nissan expects to hold the market catered by Tata Nano. Now let's wait for Renault's ultra-low cost, small and fuel efficient car.
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