Renault working on $3400 city car

Renault will begin development of an extremely cheap and fuel-efficient city car early next year that will have a price tag of just 2500 euros ($3400). The car will initially launch in emerging markets such as China and India.
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According to French newspaper La Tribune, development of the new project will commence on January 1, 2012. The car is said to be the first of many vehicles Renault-Nissan will build specifically for emerging markets. It's understood the operations will be led by Gerard Detourbet, boss of Renault's small-car division.

Details of the initial model are yet to be revealed, however, the French report says the car will be a super-compact city car using an interchangeable 'platform A' base. The engine and platform will also be developed using cost-effective techniques to keep the price down to just 2500 euros - around a third of the cost of the cheap and cheerful Renault/Dacia Logan (pictured).

The car will rival various sub-light vehicles in India - including the 'world's cheapest car', the Tata Nano - and China. La Tribune suggests there is a chance the car will make its way into other markets around the world. Would you like to see a car cut-price Renault city car in Australia?