Renault has signed an agreement with India’s Bajaj Auto to build a low-cost car.
The Tata Nano rival is penciled in for launch in India in 2012, with similar pricing of around £1500.
Code-named ULC, the design, sourcing and manufacturing for the project would be done by Bajaj and Renault would take care of marketing in India and overseas, Renault CEO Carlos Ghosn said.
"We intend to bring this highly price competitive and fuel-efficient product to the Indian market in 2012," Ghosn told reporters. The car is expected to carry the Renault badge.
Production will take place at a news plant in Chakan, with initial capacity planned at 400,000 units a year.
The project had been announced in 2008 but it has taken until now to thrash out an agreement between the two companies.
The car would dip in underneath the Logan price-wise, which is also built in India. High taxation has caused sales of the Logan to fall in India, with production at a third of capacity.
Thanks to: Autocar
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