"While it is too early to say about price of the car, the cost of the car (in terms of overall running cost) will be lower than the cost of any other new car made in India today," Chairman and CEO of Renault Carlos Ghosn at the India Economic Summit.

The car, which will hit the market a in 2012, was originally scheduled to be launched in India in 2011 but was delayed due to differences between the partners in terms of pricing and design.

Earlier, Renault had wanted to price the car at around USD 2500.

"It is not sufficient to launch the car on a low price only, but it also needs fuel efficiency. It will be a very competitive product and very affordable," he said, when asked if the ULC would be priced lower than Tata Nano.

As per the agreement, the design, engineering, sourcing and manufacturing will be handled by Bajaj Auto while marketing and selling will be by Renault-Nissan Alliance, Ghosn said.