New Delhi, 12 May 2008: Bajaj Auto and the Renault-Nissan alliance today announced that they will form a joint-venture company to develop, produce and market the car, code-named ULC (ultra-low cost) with wholesale price ranging from $2500.

The new JV company will be 50% owned by Bajaj Auto, 25% by Renault and 25% by Nissan.

Targeting the growing Indian new vehicle market, the ULC will be made at an all-new plant to be constructed in Chakan (Maharashtra) in India.

Initial planned capacity will be 4,00,000 units per year. Sales will start in early 2011 in India, as a primary market, with growth potential in other emerging markets around the world.

The feasibility has already extended into joint product evelopment and the project is on line to meet targeted performance & cost, company officials said.

The company would initially invest Rs 1,000 cr in the venture. Renault and Bajaj will manufacture engines for the small car and LCV.

Courtesy: Economic Times