Targeting the Indi an four-wheeler market, Bajaj Auto Ltd (BAL) on Monday joined hands with Renault-Nissan to launch a small car in India by 2011 that will compete with Tata Nano. In a joint press statement on Monday, Mr Rajiv Bajaj, managing director, BAL, and Mr Carlos Ghosn, president and CEO, Renault and Nissan, said that they would form a JV company to develop, produce and market the car, code-named ULC, whose economy version would be priced at $2,500. The statement further said that Bajaj would hold a 50 per cent stake, while Renault and Nissan would hold a 25 per cent stake each in the joint venture firm. The ULC will be manufactured at a new plant, which is likely to be constructed at Chakan in Maharashtra. The plant will have an initial annual production capacity of four lakh units. "Sales will start in early 2011 in India, which will be the primary market for the car," the statement added. The company further said that the feasibility has already extended into joint product development and the project is "on line to meet targeted performance and cost". The car will hit the Indian market by early 2011 and later will be exported to the other emerging markets. French carmaker Renault also has a joint venture with Mahindra and Mahindra, which manufactures Logan in India, and Nissan has signed three JVs with Hinduja flagship company Ashok Leyland.