The new mantra used by most of the auto car industry giants are Joint ventures, long-term alliance on R&D, platforms sharing, components and also facility sharing to reduce the cost on manufacturing and to e ahead in the cut throat competition. This is the reason why same engines are incorporated in different cars under different brands. Also one can see cars from different brands but similar interior and at the same time cars are identical but bear different badges. Although, Volkswagen has been following this strategy from quite a time globally but now in India this strategy is being followed by Renault and Nissan in their alliance.
Nissan began this strategy by reviving its low cost brand Datsun and announced that the new budget car will be soon launched by the year 2014. The company announced that the car will be manufactured at the joint facility in Oragadam, near Chennai and later the car will be exported to other emerging car markets from India. After this announcement made by Nissan, Renault India have announced about the developing a small car that will be first launched in India. This is understood that the car will be another new version of the Nissan Datsun compact car which will be available by 2014.
This is obvious that the new car which Renault has confirmed as 2014 small car with low cost Dacia is similar to what Nissan Datsun compact car will be. The name of the new Dacia small car will be Renault Towny. Renault Small Car will be priced up to Euros 5,000. The car will be competing with Volkswagen UP! and the Skoda Citigo in ultra compact segment of global car market with European standards. Similar to the plans of compact SUV Duster, the Renault Small Car’s right hand drive version will be exported from India, if the sales of the car are pushed towards UK.
