Taking advantage from its local partner, Bajaj's low- cost production techniques, Nissan is confident that the small car project will give a boost to the profits of the Japanese auto maker in a big way.

Gilles Normand, Nissan's corporate vice president in charge of Africa, the Middle East and India recently confirmed the fact that the low-cost advantages and the margins that Bajaj had in the three-wheeler segment gave a lot of confidence to Nissan that the small car project will provide the much-desired boost to the profitability and volumes of the automaker.

Nissan's small car is expected to make debut in the year 2012 and will most probable be sold under the Nissan badge competing with the Tata Nano.

For the uninitiated, more than 50% of the cars sold in the Indian market are below the $8,000 mark making it the most lucrative destinations for small cars. Nissan's 4% operating margin forecasted in the fiscal ended March 31 is way to low when one compares to the 10.5% operating margin of Bajaj Auto in the year 2009. Bajaj didn't make a forecast for the fiscal gone by.