A new study has found that the market for low cost cars could grow by as much as 70% in the next 10 years.

Researcher RL Polk (Polk) defines a low cost car as one that costs under EUR10,000, and, according to Automobilwoche, found that, by 2017, 16m such cars will be produced globally.

That 70% growth in the sector will far outpace global vehicle production, which is forecast to rise 30% in the next decade.

New cars in this segment scheduled for production include the Tata Nano, the VW Up and a new low cost car from Toyota currently code-named EFC.

The global market for low-cost cars and light commercial vehicles was 9.4m units in 2007, up 9% year on year.

The highest growth in low cost car production will be in Asia. Growth will be especally strong in India where many people are entering the car market for the first time.

Around 60% of the low cost car production will be in Asia (excluding Japan) while Latin America and Russia will also benefit from growth – Russia alone is expected to produce 1.6m low cost cars by 2018.

The market for low cost cars in established car markets is usually low because of the availability of good used cars, and tough emissions and safety standards, according to Polk. The Dacia Logan is an exception.