French auto major Renault and Bajaj Auto have agreed to price the ultra low cost (ULC) car that they are jointly developing with Nissan at $2,500, (around Rs 110,000) to take on Tata Nano.
"In India, Renault and Nissan are developing an ultra low cost vehicle with the Bajaj group, benefiting from its expertise in the light vehicles and the knowledge of the Indian market. We are aiming for a price of $2,500," Renault president and CEO Carlos Ghosn said at the Annual General Meeting of the company on Friday.
When asked if this is the agreed price range, Bajaj Auto managing director Rajiv Bajaj replied in the affirmative.
The partners have, thus, solved the tricky issue of pricing, which has been widely speculated as the reason for the delay in the project announced in 2008. While Renault wanted a low cost car, Bajaj was keen on a car that would have high mileage and low maintenance.