New Delhi: The country's second largest two- wheeler maker Bajaj Auto Ltd (BAL) today 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 one lakh.

"Rajiv Bajaj, Managing Director of Bajaj and Carlos Ghosn, President and CEO of Renault and President and CEO of Nissan, today 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.

Besides catering to the domestic market after its launch in 2011, the JV would also explore possibilities for export of the small car in other emerging markets.

"Sales will start in early 2011 in India, as a primary market, with growth potential in other emerging markets around the world," Bajaj Auto said.

The company further said that the feasibility has already extended into joint product development and the project is "on line to meet targeted performance and cost".

Renault has a joint venture with Mahindra Mahindra, which manufactures Logan in India, and Nissan has signed three JVs with Hinduja flagship company Ashok Leyland.
Source : PTI