Renault – Nissan and Bajaj Auto announced yesterday that they are to form a JV to build a car code named ‘ULC’ with a wholesale price tag starting at US$2500 and would be within the same price range as the Tata Motor’s Nano. This JV will be 50% owned by Bajaj Auto and 25% each by Renault and Nissan.
Initial planned capacity is 400,000 units per year and would be first sold in India stating from early 2011, with potential to sell in other emerging markets later-on. Due to its low selling price, the impact on the bottom line should not be significant in the foreseeable future. However, the volume potential could be very significant in emerging markets.
