Renault and Nissan planning to launch an ultra low-cost car in India
By Andrew C., 30 Aug, 2010. 0 Comments
2011 Renault Clio
A low-cost car to rival the Tata Nato will soon be available in India after Renault finally signed an agreement with India's Bajaj Auto. The signing of the agreement ended months of uncertainty over the joint project to make an ultra-low-cost car code-named ULC, which is slated to be launched in 2012. The Tata rival, which is expected to carry the Renault badge, will have similar pricing of around £1500. Bajaj is responsible for the design, sourcing and manufacturing for the project while Renault would handle marketing in India and overseas. Renault CEO Carlos Ghosn told reporters that he intends to launch this highly price competitive and fuel-efficient product to the Indian market in 2012. Production will be done at a facility in Chakan. Initial capacity is planned at 400,000 units a year. Although the joint venture had been announced in mid-2008, it took some time for the parties to come to an agreement. The car would be positioned under the Logan price-wise, which is also built in India. Due to high taxation, sales of the Logan had dropped in India, with production cut to a third of capacity.
Gallery: 2011 Renault Clio
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