French auto maker Renault is currently working on developing an entry level 800cc small car for its emerging markets like India. Aimed at competing with the entry level range from Maruti, the Hyundai Eon and the Chevrolet Spark, the car is expected to be competitively priced in the bracket of Rs 1.5 lakh to Rs 3 lakh. What we know for sure though is that this is a global model and will be sold in Europe as, the Towny, under its low-cost Romanian brand Dacia.

Codenamed the A-Entry, the new small car will be built at Chennai facility under the leadership of Gerard Detroubet, the low cost specialist of the Renault battalion and the man behind the success of the Logan and the Duster.

Renault’s Japanese partner, Nissan, has also announced its plans to launch a small car in India, under its low priced brand, Datsun. We think that the Franco-Japanese consortium will continue to follow the trend of component sharing with this model as well. The Datsun small car is expected to be unveiled at the 2014 Auto Expo and might later be launched under the Renault brand name, along with premium features and a slightly tweaked design. 

Renault is also working on a new 800cc petrol engine codenamed the B4A, to cater to the needs of the Indian market - as per information available the small car is expected to provide a mileage of 20 KMPL.