Paris: Renault-Nissan and Indian carmaker Bajaj Auto have decided to form a joint venture company to develop a low-cost car model with a wholesale price range starting from $2,500.
The new joint-venture company will be 50% owned by Bajaj Auto, 25% by French group Renault and 25% by Japanese automaker Nissan.
The new car has been code-named ULC and it will target the growing Indian vehicle market.
Initial planned capacity will be 400,000 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.