When India’s Tata Motors announced earlier this year that a $2500 automobile would be built to serve primarily the Indian market, the news got 
worldwide attention. After all, there aren’t many cars available for under US$10,000 these days and at one-quarter of that threshold, the Tata Nano certainly raised a lot of eyebrows.
Most of Tata’s competing automakers have said that they wouldn’t be able to produce a car to compete with the Nano, although General Motors and others have been looking at producing bare bones models starting at no lower than $3500.
Well, it looks like the Tata Nano will have some competition after all thanks to the Renault-Nissan juggernaut who will work with Indian motorbike maker Bajaj Auto to produce such a model.
The new model, which has been code named the ULC (for ultra low cost), will be built and sold in India. Roll out of the first model should be in early 2011, with an initial production capacity of 400,000 units annually. Eventually, the auto partners plan on exporting the car to other emerging markets through Renault-Nissan’s current worldwide dealer network.
The new automotive venture will be 50% owned by Bajaj Auto, with Renault and Nissan, where each company owns a piece of the other, controlling 25% each.
Further Reading
Bajaj, Renault, Nissan sign JV for small car
Renault Gives Tata a Run For Its Money
