Renault Takes on Tata Nano, Competing on Price
November 10, 2009
French automaker Renault will take on Tata Motors' Nano, currently billed as the world's cheapest car, with "an ultra low-cost" car designed by Renault and built by its partner in India, Bajaj Auto beginning in 2012, a year later than originally planned.
"The cost of this car will be lower than any other car made today in India," said Renault/Nissan CEO Carlos Ghosn at the World Economic Forum meeting in New Delhi, India, Tuesday.
Ghosn would not confirm the car's price - estimated at $2,500 to $3,000 to the Nano's $2,100 starting price - but would only say it will have the market's lowest production cost. A new plant will be able to annually produce 400,000 of the vehicles, code-named ULC.
Ghosn predicted the car market in India will triple from the current 2 million vehicles a year to 6 million in the next decade.
Posted by Michelle Krebs at 11:32 AM under Business , Companies | Comments (2) | digg this | Seed Newsvine
The motorcycle & scooter industry there is no doubt getting ready to introduce upgraded, "luxury" enclosed 2-and 3- wheelers.They control a huge market now in India, and they aren't going to sit passively and watch it dry up.
Posted by: fulcrumb | November 10, 2009 at 6:51 PM
^ Agreed. I'd say if anyone is going to gain market share in India, it'll be Honda.
Posted by: estreka | November 11, 2009 at 5:00 AM