Though reports of an 800-cc small car from French carmaker Renault stable in the sub- Rs.
4,00,000 category have been steadily hitting the market, its global chief operating officer Carlos Tavares maintains that the final button has not yet been pushed.
"It is not yet an appropriate time from the project point of view," Tavares said in a recent interaction with reporters in Chennai.
He said the company was still examining the cost and revenue details. "If all functions of the company commit that they can deliver this result, then you push the button and opt for the tooling go ahead, which is a decision to make the car. It is much too soon to do that."
The media reports say that the upcoming small car, codenamed ‘A Entry’, is expected to make an appearance by June 2015. However, Tavares said that a lot of work needs to be done. "We are doing our engineering homework, make all the clinic tests… we still have huge amount of work to do before we bring the car to the market."
Meanwhile, Renault’s global partner Nissan will launch its low-cost brand Datsun’s cars in India next month.
Tavares said the company is taking time to enter small car as it is attempting to differentiate itself from the rest of the market. "I believe that my competitors are making tonnes of money in that market, and how to bring something that creates a sense of appeal in the eyes of Indian consumers and at the same time generates good profitability for the company, that is where the magic may be," he said.