Bajaj confirms Nano-rivaling mini car

India's Bajaj Auto has confirmed that it will produced a Nano-rivaling mini car through an alliance with Nissan and Renault. The new car -- codenamed ULC -- will be produced through a new joint venture company which will be 50 percent owned by Bajaj and 25 percent by Nissan and Renault.

The new car will wholesale from $2,500 -- with retail pricing in the neighborhood of $3,000 -- and will be produced at a yet-to-be-constructed plant in Chakan, India. The new plant should be up and running by 2011 with an annual capacity of 400,000 units.

The ULC will initially be offered in India, but will eventually spread to other emerging markets around the world.

Bajaj unveiled a prototype of the ULC earlier this year.

It is also reported that Nissan and Renault will both get versions of the car, with Nissan considering a model for the U.S. market.