French auto major Renault said it has finalized plans for ultra low cost car in India with its partner Bajaj Auto and the vehicle will hit the market by 2012.

Mr Carlos Ghosn chairman & CEO of Renault at the India Economic Summit said that “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.” He added that the brand under which the car will be sold will be selected by Renualt-Nissan alliance.

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 USD 2500. However, differences erupted between the partners on a host of issues, including branding, styling and price point.

(Sourced from Business Line)