Code-named as ULC, the project will see the formation of a new company jointly owned by Bajaj Auto (50 per cent), Renault (25 per cent) and Nissan (25 per cent). This will be Renault and Nissan's third joint venture project in India.
A release from Bajaj and Renault stated, "Targeting the growing Indian new vehicle market, the ULC will be made at an all-new plant to be constructed in Chakan in India. Initial planned capacity will be 400,000 units per year. Sales will start in early 2011 in India, as a primary market, with growth potential in other emerging markets around the world."
The feasibility has already extended into joint product development and the project is on line to meet targeted performance and cost.