Bajaj, Renault and Nissan have cleared the air between them for development of the new ultra low-cost car and are now in full gear to speed up the project for timely launch. There are speculations doing rounds in the industry that Bajaj may use its patented Digital Twin Spark ignition to equip its low cost car. The combustion chamber consists of twin-spark plug at either ends for better and faster combustion. This technology yields large benefits when combined with Computerized Direct Ignition system and the gen-next throttle response system.

The new ULC car will have at least 70-80 percent of its contents from parts that are currently being used in scooters, motorcycles or three-wheelers. It will save at least 30 percent costs for the company without compromising on the quality. Bajaj-Renault-Nissan are expected to use their existing two-wheeler manufacturing facilities to set up assembly units for the ULC project rather than setting up a Greenfield plant Chakan near Pune. The company had initially planned to set up a new assembly unit near Pune that will be capable of producing 400,000 units annually.