Renault on a Mission to Create a Cheaper Car

Among all of the automakers in Europe, the RenaultRenaultFrance, 1898 > present189 models
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-NissanNissanJapan, 1932 > present159 models
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Alliance has been the fastest to cope with the European debt crisis by branching out to emerging markets. Renault parleyed its 25% ownership of AvtoVAZVAZRussian Federation, 1966 > present8 models
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into buying a controlling stake in the company, and it is planning a major factory in North Africa. The next step in this plan appears to be India, and alliance CEO Carlos Ghosn has just the man for the job.

Ghosn has selected Gerard Detourbet, the man who created the low-priced Dacia LoganDacia Logan 1.5 dCi FAP E...Romania, 2013 > present6 photos
, to create an even cheaper car aimed directly at India. The goal is for the car to cost less than €3,550 or $4,700.

Detourbet is taking his mission as serious as possible. He moved to Chennai, India, earlier in the year to build the groundwork for the new car and potentially a new brand. He has found Indian part suppliers and executives to bring the car to market. 

Renault will be competing with cars from Maruti, a subdidiary of SuzukiSuzukiJapan, 1909 > present47 models
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, that already offers cars for less than €3,550 or $4,700. HyundaiHyundaiRepublic of Korea, 1967 > present79 models
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offers a car called the Eon for a similar price. 

"India is the only country where you begin to see modern cars at this kind of price. Once you've done battle with the world's best cheap car manufacturer, you can go into another country where there isn't a Maruti Suzuki and be relatively comfortable," said Detourbet.

Detourbet is creating Renault's car to offer more interior room for the same price. Nissan will sell a re-styled version of the same car in India. Assuming it is a sucess, the car would be modified and sold to other emerging markets like Africa. 

"We're about where we were two years before the Logan launch, in a race against time to prove feasibility."

That would indicate that if the development is a success introduction of the new car will come in late 2014 or early 2015.

Source: Automotive News Europe