Renault-Nissan and Bajaj Auto said on Monday, May 12, 2008, that they will soon join hands to develop, produce and market small scale car, code named Ultra Low Cost (ULC). The car's base variant will be priced at $2500. The new joint venture (JV) company will be possesses 50% by Bajaj Auto, 25% by Renault and 25 % by Nissan.

 

The ULC will target the booming Indian vehicle market. It will be developed at a new plant in Chakan (Maharashtra). Initially the plant is to produce 400,000 units per year. The sale of the car will start in 2011 in India, which will be the primary market of the vehicle. Company officials said that the project is very well on track to meet the targeted performance and cost. The initial investment will be Rs 1000 crores. The engine of the small car will be manufactured by Bajaj and Renault.