The list of carmakers preparing to launch new budget-based models is growing every month, and the latest manufacturer to join that list is Fiat whose chief Sergio Marchionne confirmed it was considering developing a low-cost car. Speaking with reporters at the Geneva Motor Show, Marchionne said there’s definitely demand for such a model. Fiat already has its affordable Palio hatchback, and the new model will basically be the replacement for that car.

Fiat could use its Indian partner Tata Motors to co-develop the car, which is also producing its own budget model. "Fiat and Tata can do many things together, working in various geographical areas and using various shared platforms," Marchionne said.

Toyota Chief Katsuaki Watanabe also speaking at the show confirmed that it too was developing a low-cost model but hasn’t determined where the new car will be manufactured and in what markets it will be sold.