Mega Market for Ultra-Low-Cost Cars

Focusing on customers in developing markets

As income levels rise in industrializing countries, an entirely new category of vehicle buyers is emerging—and an enormous potential for ultra-low-cost cars priced between $2,500 and $5,000. Is there an opportunity for the major automakers from Renault-Nissan to GM and Ford? Does this development also represent an opportunity for German automakers, that have historically led the world’s premium and luxury vehicle segments?

As companies prepare for the low-cost car market, they are planning vehicles that are priced for emerging economies but meet Western standards for safety and the environment.