Renault will build an ultra-cheap car costing just EUR2,500 (US$3,375), a French business newspaper reported.

According to Wednesday’s (23 November) La Tribune, a team at Renault-Nissan will on 1 January start developing several low-price car models for emerging markets, though the vehicles could ultimately find their way into the European market, news agency AFP reported.

The cheapest will cost only a third as much as the Dacia Logan made by Renault’s Romanian subsidiary Dacia and assembled in other markets such as Russia and India.

The project will be overseen by Gerard Detourbet, head of Renault’s entry-level car division, La Tribune reported, citing internal sources.

Renault confirmed to AFP that Detourbet would join a Renault-Nissan small-car team at the start of 2012.

But the car maker did not comment on whether a EUR2,500 car would be the team’s focus.