Carlos Ghosn Renault-Nissan Chief Executive is betting that a really cheap car is under $3,000. He was already talking up the industry's next challenge at a plant-opening ceremony in India. A future model that would sport a sticker price as low as $2,500—about 40% less than the least expensive subcompact currently on the market.

The world's automakers have abruptly shifted into reverse, after years of making their mass-market cars more expensive.With stagnant growth in most of the markets, they are now eyeing emerging markets for new opportunities.

The makers will try to built basic cars that combine modern comfort with safety at a fraction of today's cost.The single most important trend in the automotive industry today, are the low-cost cars.

Renault already has a big succes with its bare-bones Logan sedan. The roomy Logan is sold in Europe since 2004 for just $7,200, 40% less than rival sedans.The French maker has sold 450,000 of the cars in 51 countries. "With the Logan we have the product and we have the lead," says Ghosn.

The next logical step should be a $3,000 car for Asian markets, built in low-cost India with a local partner.

"The main weakness of today's global automakers is that they are incapable of delivering a car that fulfills basic needs at a very low price.The people who have these skills are in India and China."says Ghosn.