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Renault plans to launch a car priced below Rs. 4 lakhs, as it looks to increase volumes in the competitive Indian car market. The French automaker currently has no volume offering which competitors like Hyundai and Maruti Suzuki do. The below Rs. 4 lakh segment generates 50% of the volume, amounting for a significant chunk of car sales in the country. Launching such economy cars are part of Renault’s strategy on the global level. Renault will expand its dealership level to 100 by the end of the year, as it looks at increasing reach and distribution of its cars.

This new sub Rs. 4 lakh car will not compete with the Tata Nano and will be priced between Rs. 3-4 lakhs. It will compete with the Maruti Alto and Hyundai Eon and will be on an all new low cost platform. The Nissan V-platform will not be used on this car. An all new platform will be developed, with the manufacturing taking place at Orgadam near Chennai. This small car will be sold globally in various developing markets, including Brazil, Russia and China.

Renault has also made it very clear that it will not battle with Nissan on price front. The company which sells the Micra as a rebadged Renault Pulse has decided to keep differentiate both the vehicles on pricing. Renault will position its cars over Nissan, trying to take the position of a premium manufacturer, which won’t work so easily as Nissan has a stronger brand recall in India. The petrol version of the Pulse will be launched soon, which will be powered by a 1.2-litre, 3-cylinder engine.

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