Nissan-Renault inks low-cost car pact with Bajaj Auto

Nissan-Renault and Bajaj Auto signed an agreement to design, develop, manufacture and market a low-cost car in India. Bajaj Auto will design and manufacture the car while Nissan-Renault will market it, Carlos Ghosn, Chairman & CEO of Renault-Nissan Alliance said in New Delhi. It will be the cheapest small car in India, Ghosn claimed, adding that the car will also be competitive on fuel efficiency. The companies had announced the formation of a joint venture (JV) in May 2007, to develop, produce and market a car code-named ULC. "We intend to bring this highly price-competitive and fuel-efficient product to the Indian market in 2012," Ghosn said at the conclusion of the India Economic Summit. "The design, engineering, manufacturing and supply-base expertise to create this all-new product will be executed by Bajaj Auto with the support of the Renault-Nissan Alliance. The marketing and distribution will be led by the Alliance, with the support of Bajaj Auto," he said.