Renault Bajaj alliance has already started their operations in Chakan, near Pune in Maharashtra. It plans to bring its Nano competitor soon to the Indian markets. However, the wait is still a little long. Renault-Bajaj aims to bring its small car by the end of 2011.

Last year the Nissan-Renault combine were contemplating about bringing an ultra-cheap car to Indian market. Now it has put its plans into action. It has lined up its expertise to build a small car under $3000. Renault shall lend its technical expertise to the development of the new model.

Renault already has a joint venture with Mahindra and Mahindra in India. It has successful model Logan in the mid-size sedan segment. However, Renault’ JV with Bajaj shall be totally different from M&M as Mahindra aims to become a global player in the SUV segment. Thus, it is not interested in small car project as of now.

Head of Renault, Carlos Ghosn, warns that it would be journey uphill in the coming months in India owing to “unfavorable economical conditions”. “We're sticking to our objectives of a 4.5 percent operating margin for 2008... and we are maintaining our volume growth projection of more than 10 percent," Ghosn told a Renault shareholder general assembly. "The first months of the year have not been easy. Everything suggests that the next few months will not be either, given an economic and financial environment that is both unfavorable and volatile," he added.