Renault to Build Low-Cost Car in India

10 November, 2009 02:06:00

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Renault-Nissan Alliance has finalized plans for ultra-low cost car in India with its partner Bajaj Auto and the vehicle will hit the market by 2012.

Ghosn, chief executive of the Renault-Nissan, announced a deal had been struck with Bajaj Auto for the car which would be designed and made by the Indian group and marketed by Renault.

"We intend to bring this highly price competitive and fuel-efficient product to the Indian market in 2012," Ghosn told reporters.

Bajaj and Renault-Nissan had announced the formation of a joint venture in 2008, to develop, produce the Tata Nano rival with similar pricing of around $3000.

Code-named ULC, the car will be made at an all-new plant to be constructed in Chakan in western India, near Bajaj’s existing motorcycle plant. Initial planned capacity will be 400,000 vehicles per year with India as the primary market and with growth potential in other emerging markets around the world.

[source: Reuters]

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