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by Brett Davis

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.

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?