Nissan plans low-budget cars

Nissan is considering developing low-budget vehicles targeting fast-growing markets in emerging economies, officials said on Friday.

Creating an affordable car through alliance with its French partner Renault SA, a forerunner of such products, is a possibility, a Nissan spokesperson said on condition of anonymity, citing protocol.

Renault launched the no-frills Logan family sedan in 2004 primarily for emerging countries and has set an annual global sales target of 700 000 cars by 2010.

Nissan has been studying to develop its own version of such vehicles for fast-growing consumers in India, Russia and other emerging economies, including a cooperation with Renault.

No other details about Nissan's affordable vehicle production plans were available.

Nissan's move comes as its competitors are also gearing to develop their own affordable models for the developing countries, while growth in the North American and western European markets have slowed.

Nissan formed an alliance with Renault in 1999. Renault owns a 44% stake in Nissan, which in turn holds 15% of the French automaker. The two companies have a combined annual output of roughly 6 million vehicles, together making them the world's No. 4 carmaker.

The world's No. 1 carmaker, General Motors, said in October that it had called off discussions with Nissan and Renault on creating a vehicle-making alliance.