Toyota, Renault-Nissan Look to Emerging Markets

With vehicle sales in established markets declining, it is hardly surprising that manufacturers are eyeing fresh fields. India’s Tata has already unveiled the Nano, at £1,300 the world’s cheapest new car; now the company faces competition from international rivals hoping for a share of the Indian and other newer markets.

Toyota, along with its Daihatsu small vehicle unit, is said to be developing a new low-cost car for emerging markets. The vehicle, which would sell in locations such as India, Brazil and Africa, is said to have a planned price tag of around £3,200. Japan’s Asahi Shimbun newspaper reports this vehicle will be introduced in the early 2010s and manufactured in India. Toyota executives have not, however, confirmed this news, and are said to have countered that selling such a car under the Toyota badge could harm its brand image.

Renault-Nissan is also a contender in this segment, following the May 2008 announcement of a cooperative agreement with Indian two and three wheel vehicle manufacturer Bajaj Auto. The Renault-Nissan car is said to be designed to compete directly against the Tata Nano, and should be sold at a similar price. The car, currently code named ‘ULC’, will be manufactured by a joint venture company, 50 per cent owned by Bajaj and 25 per cent each by Renault and Nissan respectively. Production is hoped to start in India in 2011 with an initial planned capacity of 400,000 units per annum. Bajaj Auto says that India will be the car’s initial primary market, however it notes growth potential in other global emerging markets.