Renault, Nissan and Indian motorcycle maker Bajaj Auto on Monday said they would form a joint venture company to develop, produce and market a low-cost car (code-named ULC) priced from $US2500 wholesale.
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At that price, the new car would provide strong competition for rival Tata’s new Nano. The new company will be 50% owned by Bajaj Auto, 25% by Renault and 25% by Nissan.
Targeting the growing Indian new vehicle market, the new car will be made in a new plant to be constructed in Chakan (Maharashtra state) with an initial capacity of 400,000 units a year.
Sales will start early in 2011 in India, the primary market, and will later expand to other emerging markets around the world.
The three automakers said the project is now at the joint product development stage and on track to meet targeted performance & cost.
Bajaj low cost car details soon
