French auto major Renault 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 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 on Friday.
When asked if this is the agreed price range, Bajaj Auto Managing Director Rajiv Bajaj replied in the affirmative.
The partners have, thus, solved the tricky issue of pricing, which had been widely speculated as the reason for the delay in the project announced in 2008. While Renault wanted a low-cost car, Bajaj was keen on a car that would have high mileage and low maintenance.
Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on Tata Nano, currently available in a price range of Rs 1.23 lakh-1.72 lakh (ex-showroom, Delhi) for three variants.
Last year, during his India visit, Ghosn had announced the finalisation of the project and said: “As per the agreement, the design, engineering, sourcing and manufacturing will be handled by Bajaj Auto, while marketing and selling will be (done) by Renault-Nissan Alliance.”