Renault has confirmed that it is developing an all new platform (Global A) that will spawn a range of new small cars in the future.

The entry level Renaults will be priced around Rs 3.5 lakh and will compete directly with cars like the Maruti Wagon R, A-star and Hyundai i10. Renault will leverage its manufacturing base with Nissan in Oragadam near Chennai to heavily localise the Global A platform.

This will help the French carmaker to make small cars with a competitive price tag. Renault is likely to showcase a Global A concept car at the 2014 Auto Expo in New Delhi.

Renault is giving finishing touches to its India strategy, which will include the launch of five new models within the next five years. Renault’s first model will be the Fluence saloon expected by June this year, followed by the Koleos SUV six months later. Both the Fluence and Koleos will be assembled as CKD kits at Renault-Nissan’s Chennai plant.

Now the bigger challenge for Renault will be to develop an all-India dealer network. The car manufacturer is planning to setup 70 dealerships by 2013-14 which will be their first phase.