Paris  - French car-maker Renault and Indian manufacturer Bajaj Auto have agreed on a joint venture to develop, produce and commercialize a car for the Indian market, Renault announced Monday.

The automobile, which is code-named ULC, will be priced starting from 2,500 dollars per vehicle and manufactured at Chakan, in the state of Maharashtra, Renault said in a press statement.

Bajaj will own 50 per cent of the joint venture, with Renault and its subsidiary Nissan having 25 per cent each.

Initial capacity of the factory at Chakan will be 400,000 vehicles a year. The ULC is to go on sale in India in 2011, with a view to marketing it in other developing nations. (dpa)