Renault-Nissan, Bajaj to form low-cost car venture

PARIS (Reuters) - Renault-Nissan and Indian carmaker Bajaj Auto said on Monday they would form a joint venture company to develop a low-cost car model with a wholesale price range starting from $2,500.

The new joint-venture company will be 50 percent owned by Bajaj Auto, 25 percent by French group Renault and 25 percent by Japanese automaker Nissan.

The new car has been code-named ULC and it will target the growing Indian vehicle market.

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.

(Reporting by Sudip Kar-Gupta; Editing by Rory Channing)