Renault has revealed that it was considering developing a new ultra-low cost car that would undercut its current Logan sedan (pictured) in price and be sold in emerging markets. The announcement follows the release of an article by French newspaper Le Figaro, which reported that Renault was developing a $3,000 car for the Indian market due within three years.

The newspaper also published details about plans for the opening of a third "technocenter" in India that would hire 1,000 local engineers to develop the new car. Renault has previously confirmed that it is building a second plant in India that will be fully operational by 2009.

"We are indeed thinking about a car priced more competitively than the Logan for emerging markets," a Renault spokeswoman told reporters from Reuters. If built, this new model would join the locally-assembled Logan model that has been on sale in India since May.

A final decision is expected soon when the project is discussed at an upcoming Works Council meeting.