Tata Nano would be main rival
Renault is after a slice of the ‘World’s Cheapest Car’ pie, reportedly bringing out a vehicle that will cost $2,500 (£1,276).
The car is only known as Codename ULC and will cost around the same as the Tata Nano, which was recently launched.
Renault-Nissan will work with Indian company Bajaj on the car and production is expected to begin in 2011.
India will be the new car’s main market and 400,000 will be made every year in a factory in Chakan, Maharashtra state.
The Tata Nano will be the current cheapest car when it goes on sale later this year.
India’s economy is booming and car sales are expected to more than quadruple to $145bn by 2016.
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