French automaker Renault SA in a joint venture with India's Bajaj Auto Ltd and Japan's Nissan Motor Co plans to build a ultra low-cost car codenamed ULC in India.
The ULC designing and styling will be undertaken at the Renault Design India, the French automaker's design centre, which was inaugurated by the company, yesterday in Mumbai.
The joint venture is also considering a manufacturing set up on a Bajaj-owned land in Chakan, Pune. According to a company official, 4 lakh cars per annum will be produced initially and the product would roll out by 2011.
The new high-security design facility in Mumbai will take care of demands arising from India and other regional markets, which will work closely with other global centres, says Renault.
The Renault-Nissan partnership is also planning to build another facility in Chennai to produce cars for the Indian market.
The Indian design centre is the third centre by the company this year after Brazil and Romania. In total, the company has five design centres.
In mid 2008, Bajaj-Renault-Nissan had announced a joint venture for the ULC project with Bajaj holding a 50 per cent stake and Renault and Nissan holding 25 per cent each to produce and market small cars in the country. (See: Bajaj Auto, Renault-Nissan alliance to build ultra-low cost cars at Chakan plant)