Acta Diurna

The Franco-Japanese carmaker Renault-Nissan and the Indian motorcycle constructor Bajaj announced on May 12 a release of a 2500-dollar car by early 2011. This very cheap car known as “Codename ULC (ultra-low-cost)” targets the Indian quickly growing middle class. It will cost 100.000 rupees in India.

The joint venture that will develop the ULC would be 50 percent owned by Bajaj, 25 percent by Renault and 25 percent by Nissan. The car will be produced in a new factory in Chakan, Maharashtra, where labor is cheap. This firm could construct 400.000 units a year according to the carmakers.

The Indian costumers won’t save money only through the purchase of the car but also through its oil consumption. "It will offer twice the fuel economy than the existing products in the market", Bajaj auto managing director Rajiv Bajaj said. The firm aims for 34 kilometers on a liter of fuel.

“The concept is brand new. We will propose a safe, solid and inexpensive car to replace the motorcycles”, concluded a representative of Renault. In fact, ULC has just one rival for the moment: the Nano of the Indian group Tata Motor. It will be marketed during this year at a price of 2500 dollars (100.000 Indian rupees).