Another $3,000 Car in the Works

Posted by: Gail Edmondson on June 21, 2007

It’s official — Renault and Nissan are working on designing a $3,000 car for the Indian market. That move will challenge India’s Tata Motors for a slice of the fast-growing car market in India, which is expected to double by 2010. Tata is planning to unveil a bargain-basement car costing $3,000 next year.

In February, Renault-Nissan Chief Executive Carlos Ghosn hinted that he would pioneer an even cheaper car than the trail-blazing $6,000 Logan, which is built in Romania and other emerging markets. The Logan’s sales are growing at a breakneck pace, and Ghosn aims to sell 800,000 a year by 2009. Yesterday Ghosn announced in Toyko that Nissan and Renault are exploring the concept together, since many consumers in India can’t afford a car that costs more than $3,000.

Ghosn’s game plan shows the global race to build really cheap cars is accelerating. Although these no-frills models will probably not be sold in Western Europe or the US, you can be sure that the innovations used to bring costs down will flow through the entire design and engineering chain at Renault and Nissan, helping them bring costs down across the board as they craft a new generation of no-frills models. The question now is: How green will they be. And who else will join the fray.

Reader Comments

Brendan Moore

June 22, 2007 4:23 PM

If its possible to do this anywhere, then it would be India. Lots of chatter about China this and China that, but the Indian auto industry is more innovative, in my opinion. Take a look at a piece we did a few months ago:

http://www.autosavant.net/2007/04/india-future-auto-giant.html

I think India has better engineering talent than China, and although China has a huge headstart, India may be the one to watch 10 years from now.

B Moore - autosavant.net

Perodua

July 21, 2007 10:07 AM

Is it another Indian cheapshot ??? Demeaning Chinese cars just to bring up your own cars ???

Nice one Brendan Moore, we can see that you are an indian. and that site is full of indian posters, so i am not surprised. Seriously, I hardly see any Chinese blogs or article trying to undermnine anything indian, so I don't see why Indian like you keep trying to take cheapshot to promote your "Indian shining" propaganda.

Hopeless People

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