The deal is finalised at last by Renault and Bajaj for the low cost car and the cars would be ready by 2012, said the companies. The price is kept in abeyance but will be lower than the cost of any other new car coming from the Indian market, said the CEO for Renault. The car was to have entered into the Indian market by 2011 but the delay was due to the long tussle between the companies regarding the price and design.

Renault insisted on the price range of $2500, but Bajaj was stubborn on the pricing as well as fuel efficiency. The car would be priced below the price of Nano, said the officials. Under the agreement, Bajaj will handle the design, engineering, sourcing and manufacturing while Renault-Nissan will look after marketing and sales. The Renault-Nissan alliance will decide the brand as Bajaj will not be in the picture for the branding.