Renault and Bajaj Auto are planning to roll out an ultra low-cost car in 2012 that Renault is aiming to market in India with a lower retail price than Tata’s Nano.
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India media reports say that the proposed car – codenamed ULC – will also consume less fuel than any other four-wheeler in India, according to Carlos Ghosn.
“This is a market [India] that’s going to be one of the largest, and we want to make sure that whatever we do, we do it right,” Ghosn said.
He predicted the Indian market could grow more than four times to 6m in 10 years.
The design, manufacturing and sourcing for the ULC would be done by Bajaj Auto, while marketing of the car in India and overseas would be handled by Renault-Nissan, Ghosn said.
The car – which will compete be head-on with the Tata Nano – is expected to carry the Renault badge.
The two companies first announced they would link up to produce an ultra-cheap car in 2008 but since then there have been reports of disagreement between them.
Ghosn said the problems had been ironed out between the two companies at a meeting this week and “now we are in total agreement.”
Bajaj Auto is a leading Indian manufacturer of two-wheelers and three-wheelers.
Renault also collaborates with Mahindra in India, which assembles the Logan.
