ULC: Bajaj Auto and Renault-Nissan to work on low cost car for India

Indian two wheeler industry giant Bajaj Auto has announced that they are now collaborating with Renault-Nissan to launch a new low cost car in the Indian market.

The group aims to bring this new cheap car to the Indian market by 2011. It could become the first major rival to the Tata Nano model scheduled for launch later this year.

Bajaj Auto said in its statement: “Rajiv Bajaj, Managing Director of Bajaj and Carlos Ghosn, President and CEO of Renault and President and CEO of Nissan, announced they will form a joint-venture company to develop, produce and market the car, code-named ULC, with wholesale price range starting from USD 2,500.”

Bajaj would own 50% stake in this new collaboration. Renault and Nissan would own 25% each.

This car is expected to be manufactured at an all-new plant to be constructed in Chakan.