Renault-Nissan announced on Thursday that it has entered into an agreement with India's leading two-wheeler maker Bajaj Auto for the manufacturing of a new compact car for the emerging markets like India and China. However, no official statement has been made from the company either on the price or specifications of this prospective small car. Both groups are already developing an India bound ultra-low-cost fuel-efficient car, which is expected to hit the Indian roads by year 2012.
It is to be mentioned here that just two days back, Bajaj Auto had denied all media reports that claimed the company snapping its ties with Renault in India. In a press note issued on Monday, the company has stated that the reports were untrue. The partnership is intact, and the project is on, it added.
Bajaj Auto is India's second-largest motorcycle manufacturer that sells some of the most popular bikes in India including Bajaj Pulsar and Discover. The company has registered a whooping 68.39% increase in the sales of its motorcycles in the Indian market, during the month of June 2010. The company sold 2,82,808 units of its bikes during the period. With this, sales of the company's commercial vehicles and three-wheelers witnessed a considerable growth during the period.