Tokyo, Japan – The Renault-Nissan Alliance and Bajaj Auto have announced they will form a joint venture company to develop, produce and market a car, code-named ULC, with a wholesale price range starting from US$2,500 in India. The venture will be owned 50 per cent by Bajaj Auto, and 25 per cent each by Renault and Nissan.

Targeting the growing Indian new-vehicle market, the ULC will be made at an all-new plant to be constructed in Chakan, in Maharashtra State in India. Initial planned capacity will be 400,000 units per year, with sales expected to start in early 2011.

The feasibility has already extended into Joint Product Development, and the project is on line to meet targeted performance and cost.