Nissan and Renault have joined forces with Indian firm Bajaj Auto to produce a new low cost car that is hoped to rival Tata’s Nano model.
The new vehicle, nicknamed ULC (ultra low cost car), is set to be manufactured at a site in Chakan, India, at a capacity of 400,000 units per year initially. It is to be petrol-fuelled, with a diesel version to follow, and will first be made available to only the Indian market, with a wholesale price of $2,500.
Project ownership will be divided among the three firms, with Renault and Nissan claiming a 25 per cent share each and Bajaj taking control of the remaining 50 per cent. However, it is not yet known which brand the car will be sold under.
The ULC is due to hit the market in 2011.
