French auto maker Renault is all set to launch a low cost car in India by 2014 that would take on the likes of the world's cheapest car Tata Nano. There are reports suggesting that Renault would partner with Nissan and they would together develop two low cost cars, which would come with a price tag of €5,000 (Rs. 3.60 lacs) and €3,000 (Rs. 2.16 lacs). The one with a price tag of Rs. 2.16 lacs would come in the range of Tata Nano and would be its direct competitor.
The small cars would be manufactured at Renault's Chennai production plant for the Indian markets and would not be sold in Europe. The low cost Tata Nano competitor is expected to house an 800 cc engine and would deliver a mileage of around 20 kmpl. It would be a 4 seater car just like Nano and is expected to have an attractive look.
Nano, on the other hand, boasts of being the cheapest car of the world and this has acted as the USP for the car so far. However, the demand of the Nano has considerably dropped in the last one year. This is not because the demand for small cars has decreased in India. The recently launched Alto 800 managed to make a booking of 44,000 in just 30 days of its launch.
Tata Nano, which at present is priced between Rs. 1.41 lacs and Rs. 2.13 lacs was launched in 2009 amid a lot of enthusiasm among the car lovers. The Nano also brought a lot of fame globally to Tata Motors for bringing the cheapest car of the world. However, its magic could not last long on the buyers as it was criticised on a number of parameters. Despite this fact, no significant changes have been made by the company to Nano so far.
As there is no competitor to the world's cheapest car as of now, Nano is preferred by people who are on a budget. However, once the Nano competitor from the stables of Renault hits roads in the country, Nano would find it hard to make sales, unless Tata makes some important changes on the exterior and the interiors of the car.
