Renault, Nissan and Bajaj Auto have agreed to price the ultra low cost (ULC) car that they are jointly developing with Nissan at $2,500, (around Rs 1.10 lakh) to take on Tata Nano.
“In India, Renault and Nissan are developing an ultra low cost vehicle with the Bajaj group, benefiting from its expertise in the light vehicles and the knowledge of the Indian market. We are aiming for a price of $2,500,” Renault President and CEO Carlos Ghosn said at the Annual General Meeting of the company.
Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on Tata Nano, which is currently available in a price range of Rs 1.23 lakh-1.72 lakh (ex-showroom Delhi) for three variants.
The three partners of the ULC project have been struggling to find engineering solutions to produce such a low cost product.
Considering the rising costs especially that of steel we feel it will be very difficult to price the car at Rs. 100,000.