Online sources are reporting that Renault has started development work on a new model that would be powered with an 800cc engine.
This model would be positioned directly against Maruti Alto and Maruti 800.
Maruti Alto is the largest selling car in the Indian market. and this segment is already seeing intense competition from Tata Nano and Hyundai Eon.
Renault is expected to manufacture this model at their Renault Nissan Alliance plant in Chennai. Though it could take them 2-3 years to launch it in the Indian market.