A new sedan that will be made available next week is set to launch a price war in an entry-level market presently dominated by the Toyota Yaris.

Priced at Dh38,500, or Dh799 per month, the new Renault Logan will directly target first-time drivers stepping out of driving schools, fleet companies and those earning as low as Dh3,000 per month, the company told Emirates Business following a launch brief in Dubai.

The French car manufacturer has decided to introduce its 2011 model in the UAE through its exclusive dealer for Dubai and the Northern Emirates, Arabian Automobiles.

Speaking exclusively to this paper, Nicolas Guiochet, General Manager Marketing for Renault GCC, said the new model was the company's second generation car following the 2007 Logan it built with India's Mahindra that lowered manufacturing costs by 15 per cent. Since its 2007 launch in India the Logan overcame severe criticism on its box-like design and won over an extremely price sensitive market with its "price versus benefit" value positioning.

While the 2007 Logan was "designed-to-cost", the new model has focused on look.

The new design, influenced by customer feedback from India, Europe and a total of 61 markets the car sells in, features more chrome finishes on the front bonnet and interior, a new front grill and a thicker rear bumper to negate the earlier "vertical rear look".

Guiochet said the company hopes to replicate the same success in the UAE. An opinion echoed by Michel Ayat, the Chief Executive of Arabian Automobiles.

"This year is the first of what will be a gradual recovery from the crisis. Sales dropped by about 40 per cent in 2009, but the crisis also created a budget conscious consumer. With the Logan we finally have a car that will address that concern. We consider the Toyota Yaris, Chevrolet Aveo and Hyundai Accent as direct competition to the Logan and are confident that with this unbeatable combination of price and specifications, we can seize a five per cent market share in the segment," Ayat said.

With category-leading space, engine power and fuel efficiency, the Logan has a compelling sales pitch. Confidence rides high among the Renault-Arabian Automobiles team, which will simultaneously put the Logan van and pick-up on the market.

Since its launch in 2004, more than one million Logans have been sold worldwide and its large sales volumes make it a key product for the Renault-Nissan alliance. The Logan also sells as Dacia Logan or Nissan Aprio in other markets.

Based on the 'B0' platform, it boasts a roomy interior with 510 cubic decimetres of boot space, which is 160 litres bigger than its closest competitor. It is powered by a four-cylinder 1.6-litre 16v petrol engine and develops 105bhp at 5,750rpm and 148Nm of torque at 3,750rpm. A four-speed automatic transmission is mated to the engine as standard.

Renault hopes to reposition itself as a value-for-money quality proposition in the local market and is looking at Logan sales to take it from a one per cent share in the small family car segment in 2009 to five per cent in 2010, Ayat said. "Logan is backed by a highly affordable basket of replacement parts, which further underlines the superb value-for-money proposition and ensure low cost of ownership," he said.

Test driving the 2011 Renault Logan 1.6

There's no denying the Logan is a spacious car. And if you aren't aware of this "crucial" fact before you reach a Renault showroom, you will 30 seconds later.

An additional three minutes spent there will ensure the fact remains etched… forever. They hammered it in when I walked into their Deira showroom for my test drive. The guy checking my licence and handing me the key started singing the praises of its space again. Evidently, he wasn't convinced the sales staff did their job.

"Three, broad, tall, full-grown men can sit comfortably on the back seat, sir. Its engine is also better powered than the rest and better fuel efficiency, sir," he sang… off-key, acapella.

I hurried to the vehicle for fear that the cleaning lady and office boy might grab hold of me to offer their cover versions and totally dampen my penchant for discovering things myself. A quick glance at the car's exteriors revealed a few needed facelifts to the 2007 body, but since the shape and lines remain the same I skipped past further examination and jumped into my seat.

Now for Dh38,500 I always knew it was going to be a rather basic offering. And while I was secretly hoping for some surprise from the interiors, I wasn't disappointed to find that it is indeed the most basic of interior options.

It is what the price point allows. Basic plastics and upholstery, a barren stick to control its automatic gearbox, a rudimentary radio and disc player, and manual knobs to adjust side-mirrors; this is the Ryanair of cars… without Michael O'Leary for CEO. He'd probably have a bench for a backseat or better yet, inch-thick cushioned floor seating for everyone but the driver. The driver would get a well-bolted stool. Phew, another Dh2,000 off.

Fortunately, the Logan is more sensible. The seats are big and comfortable, even on long drives. It's a tad more sophisticated under the hood, but only in specifications. It took a long time to get the 1.6 litre engine to hit 120kmph and it lacked punch when it came to sudden bursts needed for overtaking. But performance will always take a hit when you opt for better fuel efficiency. At 8.3 litres for every 100km, this really is a car for the penny saver. It offers Euro 3 standards of safety, has high ground clearance, is very steady on the road, and yes, is very spacious.