Bajaj ties up with Renault-Nissan for Rs 1-lakh car


New Delhi : The country's second largest two- wheeler maker Bajaj Auto Ltd (BAL) on Monday joined hands with Renault-Nissan to launch a small car in India by 2011 that will compete with Tata Motors' Nano on price point - Rs 1 lakh.

"Rajiv Bajaj, Managing Director of Bajaj and Carlos Ghosn, President and CEO of Renault and President and CEO of Nissan, announced they will form a joint-venture company to develop, produce and market the car, code-named ULC, with wholesale price range starting from USD 2,500," BAL said in a statement.

In the JV, Bajaj would hold 50 per cent stake, while French car maker Renault and Japan-based Nissan would hold 25 per cent stake each, it added.

"Targeting the growing Indian new vehicle market, the ULC will be made at an all-new plant to be constructed in Chakan (Maharashtra)," the statement said.

The plant would have an initial production capacity of four lakh units per year.