Renault, which has entered into a joint venture with India's leading SUV maker Mahindra & Mahindra (M&M) for marketing of a no-frills sedan, Logan, in the Indian market, is interested in developing a small car priced at $3,000, which could pose a serious threat to Tata Motors' dream car project, the sub-$2500 people's car that is due to debut from of its Singur plant next year.