Nissan, VW Target Budget Car Market

Nissan, VW Target Budget Car Market

Last year, Nissan announced plans to revive its Datsun nameplate for new and emerging markets, specializing in budget cars that could be as cheap as $3,000 in certain countries.

Now, other automakers are looking at doing the same, with Volkswagen planning a low-cost car brand with vehicles priced from $6,500 to $10,000. Of course, those vehicles would only be sold in emerging markets under a different nameplate. The German automaker has not, however, made an official decision on whether to build such a low-cost option, and is expected to make a decision by 2016 if a lower-range brand is to be announced.

SEE ALSO: Datsun to be Revived for Emerging Markets

Nissan’s move of reviving the Datsun brand with low-cost vehicles is a page taken out of Renault’s book. Renault, Nissan’s business partner, has the Dacia brand which has been quite successful. Datsun will be launched in 2014 in Russia, India, and Indonesia and has worked closely with Dacia to develop the new budget brand.

According to Amaud Deboeuf, director of Renault’s entry-range program, the automaker expects to sell close to 1-million cars based on the company’s low-cost platform in 2012, almost an increase of 20 percent compared to its 813,000 in 2011.

[Source: Automotive News]