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French auto major Renault on Tuesday said it has finalised plans for ultra-low cost car in India with its partner Bajaj Auto and the vehicle will hit the market by 2012.
"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," Chairman and CEO of Renault Carlos Ghosn at the India Economic Summit.
The brand under which the car will be sold will be selected by the Ranualt-Nissan Alliance, he added.
Earlier in 2008, Renault-Nissan alliance and Bajaj had announced the low-cost small car project, code named ULC, the price of which would start from $2,500 (about Rs 1 lakh).
However, differences erupted between the partners on a host of issues, including branding, styling and price point. While Renault was keen on having a low-cost car closer to the Tata Group's Nano, Bajaj was more interested in producing a car with better mileage than the existing cars in the market.
Ghosn had declined to commit whether the car would stick to initial price point of $2,500.