RENAULT is planning a major upset in budget-priced fleet motoring by making its Logan utility model (pictured) available in British showrooms in two years’ time.

A UK version of the French company’s four-door ‘world car’ range is likely to cost less than £5,500 when it goes on sale in autumn 2007.

Based on the western European market entry-level model being launched in France in July, the Megane-size car will have a choice of petrol or diesel engines and be fitted with anti-lock braking and front airbags. It is understood that a sub-£7,500 price is being targeted for examples with luxury trim and a comprehensive specification that includes remote central locking and power windows and door mirrors. Estate versions of the range have been signed off and will also be supplied to the UK at a premium of just £500.

A Renault spokesman said: ‘All the higher-spec Logan models will come with all the equipment you’d expect to find in a Renault, so we believe the range has the potential to make a considerable impact in the fleet market.

‘So much car has never been offered for so little money. This range should allow us to reshape budget-price motoring and we’re confident it will be a runaway success.’

To be built in India at the joint-venture factory just set up by Mahindra and Renault, the range is to be sold under the Dacia brand.

The spokesman added: ‘We will be monitoring the success of the car in France before deciding how it will be marketed in this country.

‘We could use Renault dealerships that are large enough to accommodate separate showrooms on site, but if we think annual sales will exceed 25,000 units, we’ll set up a stand-alone Dacia network.’