Just days after Nissan announced its possible alliance with the commercial-vehicle maker Ashok Leyland, Bajaj Auto has confirmed that its ultra-low-cost car project with Nissan and Renault is well on track.

The company said that the segment they are tapping with their small-car is entirely different as compared to the Nissan's small car project with Ashok Leyland.

In fact, the company is planning to launch its small-car in the price range of $4500-5000 which is around the Rs. 2.05-2.30 lakh range. Bajaj's small car project has been in troubles before also on the grounds of branding issues. The matter was resolved after Carlos Ghosn, CEO, Renault came to India for a long-discussion with Rajiv Bajaj, MD, Bajaj Auto. Bajaj's small car is expected to make its Indian debut by 2012.

The engineering and sourcing part of the project is being done by the two-wheeler maker while Renault will be taking care of the branding and marketing issues. The small-car project is very important as far as Bajaj Auto is concerned, as it will mark the entry of the second-largest two-wheeler maker in the country into four-wheelers.