Japanese car producer Nissan will launch low cost Datsun small car soon. It would be Ashok Leyland’s engineering division, Defiance Technologies which will design the car and also develop it, as Nissan has roped in Defiance Technologies for the purpose. The Datsun cars will be positioned at a price below the Nissan Micra. Since the demand for low cost small car is growing in countries like India, Russia, and Indonesia, Nissan has decided to develop low cost Datsun small car for the emerging markets.

Earlier, the media reports suggested that Nissan could co-develop Datsun with Renault. Since, Defiance Technologies will do the job for Nissan, various important details are being provided about the car. Defiance Technologies will design and develop the car by making use of its experience of Indian market, its local usage pattern and conditions of the road. The industry sources said Defiance Technologies will keep in mind while developing and designing the car about the cost of the car. So, it is expected that it would not import component from other countries to build the car but it will be sourced in India. Also, the spare parts cost of the car will be kept low. Also, Nissan has an added advantage as Defiance Technologies has a good connection with Indian suppliers.

Since, Maruti Suzuki is ruling the Indian market by keeping the cost of its cars low. So, Nissan has also decided to follow the same strategies which Maruti Suzuki has relied on. Nissan would launch Datsun in competitive prices to take on the cars produced by Maruti Suzuki. Nissan has through knowledge that for entry level segment, keeping low cost is the key in the Indian market. The Indian consumers demand low cost of maintenance and low purchase price and the car should be fuel efficient. It is expected that Datsun will be made available in the price point of the Alto. Nissan has planned to introduce its small car Datsun in 2014.