Tata Nano to face stiff competition by possible rival from Renault

Renault has again appeared in the limelight, after the launch of its much appreciated compact Sports Utility Vehicle (SUV) Duster, to launch a new small car in the Indian auto industry. The segment targeted by Renault is currently ruled by Tata Nano, which emerged to be a trend setter in its initial phase. However, in the present scenario, Ratan Tata's ambitious brain-child, world's cheapest car, Tata Nano has failed to ramp up the expected sales target of the company.

Tata Nano to face stiff competition by possible rival from Renault

 

However, Nano managed to pave the way for more cars along the same line, which happens to be far much better options. The news about a small car from the Joint Venture (JV) between Bajaj Auto and Renault was the talk of the town a few months ago; however, it turned out to be Bajaj RE60. With Nano having received a facelift and diesel version also on the cards of auto maker, it is expected that Renault-Nissan will soon come up with its own contender in this segment.

Back in 2011, the French car maker made an announcement regarding the launch of its new products to compete with the likes of Volkswagen. Dacia brand, completely owned by Renault, was supposed to act as stop gap by offering cheaper models in the Indian auto industry. However, in the process of re-branding and reviving the Alpine brand, Renault felt that a new market segment in the Asian region may drive in sales for it. Thus, the idea behind developing a rival of Tata Nano cropped up. The car is anticipated to run on an 800 cc engine and less expensive components, which will help the car maker to keep production costs in check.

However, the car maker has not made any official announcement in this regard. According to the rumours, the new car from the stable of French auto major will be arriving somewhere around 2014-2015. The expected launch date makes sense as it coincides with the launch of Nissan-owned Datsun brand in India, so it may be a jointly developed car from both the ends.

Since the rumours about the Tata Nano rival from Renault-Nissan has been confirmed somewhat, speculations are already rife about what the new car would be. The closest possibility happens to be an offering from Datsun brand. Being the low cost cars, Datsun models would be placed much lower than the Renault and Nissan’s Indian line-up and thus, can be a possible rival for Tata Nano. Another possibility is that the Renault might revive its alliance with Bajaj Auto and develop an ultra low cost car along the same platform as that of the RE60. Besides, there are chances that the car maker may bring in the V-platform to design its new small car, which can be positioned just below Nissan Micra and Renault Pulse.

On the other hand, Tata Nano’s 2012 version was launched in November 2011. The car is available in the market across three trim levels and features a 624 cc engine, which is capable of churning out 38 bhp. With new cutting-edge features, improved mileage and power specifications, Nano has been slowly gaining the momentum in India. Analysts believe that in order to beat the world’s cheapest car, Renault will have to outperform Nano in every aspect.