It’s hard to imagine profitability for an automaker in a $2,500.00 car, yet Renault is determined to produce a rival to Tata’s Nano. A huge success in their native India, Tata Nanos sell for the equivalent of $2,100, making them the least expensive new car option in a country with an exploding driver population.
Nissan will be working with the Bajaj Group to produce and distribute their microcar, targeted to sell at a price point of $2,500. Bajaj is best known as a manufacturer of motorcycles and scooters, and (based on volume) is the world’s fourth largest producer of two-wheeled vehicles. A partnership like this makes good sense for Renault, as it gives them access to inexpensive and fuel efficient motors while simultaneously broadening their distribution network. Renault’s goal is to produce a microcar that gets 70 miles per gallon and emits just 100 grams / kilometer of CO2.