Bajaj Auto and Renault-Nissan will be producing their much-talked-about low-cost car under an OEM arrangement and not a joint venture as was earlier believed. Following Bajaj Auto’s recent clarification that the companies did not intend to form a new corporate entity, a Renault-Nissan official confirmed that the partnership was always meant to be based on an OEM exchange. Bajaj Auto will develop and manufacture the car, while Renault will be responsible for its branding and marketing.

The car is expected to be launched in 2012 at a starting price of $2,500. Nissan-Renault Director (Communications), Mr Simon Sproule, told a business daily in India that there had been no new announcements regarding the project since November 2009. He said that it had been decided at the very beginning that Bajaj, with its long experiencre in low-cost manufacturing, would produce the car, while the Renault-Nissan alliance would pitch in with its expertise in selling four-wheelers.