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Japanese auto major Nissan, which is looking to expand its reach in the India market, is gearing up to launch a new small car in the country under its low-cost brand, Datsun.

Reuters reported that the company would be launching a new small low-budget car in the domestic market within the next 18 months, which would sit below Datsun's current offering, Go hatchback. The model that is yet to be named is likely to be based on Datsun Redi-GO concept car and is likely to receive a competitive price tag in the market.

Underpinned by the Renault-Nissan d CMF-A platform, Nissan's next Datsun offering would be an affordable model in the country and is likely to take on the likes of small cars like Maruti Alto and Hyundai Eon.

"It is a smaller car than the Datsun GO and will be more competitive," Guillame Sicard, president for Nissan India told Reuters, adding that "It will be a cost-effective positioning."

Other details of the new small car are scanty at this point of time.

Based on the same CMF-A (Common Module Family – Affordable), French auto-maker Renault will also be launching a small car in the country in the coming months. Codenamed XBA, the model that is designed to rival Maruti Alto and Hyundai Eon is expected to pack 800cc petrol engine coupled with an automated manual transmission (AMT) or manual transmission under the hood.

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