Renault-Nissan join the race to produce a $2500 car

How times change. After five years of high oil prices, new eco fashions and the continuing explosive growth of the economies of the developing world, the strategic direction of the volume car manufacturers has shifted radically. It doesn’t come as a surprise to hear that Renault-Nissan has announced a joint venture with Indian firm Bajaj to produce a $2,500 car.

The vehicle, so far known only as Codename ULC, will cost about the same as Tata Motors’ Nano, the world’s cheapest car, launched with great fanfare earlier this year. India will be the ULC car’s main market with 400,000 to be made each year in that country.

India’s domestic car market is predicted to boom in the coming years on the back of the country’s fast-growing economy and increased consumer wealth. Indian car sales are predicted to more than quadruple to $145bn by 2016.