Indian two-wheeler company, Bajaj Auto, is yet to finalise its low-cost car project, along with Japanese car company Nissan and French company Renault. The three companies will be analysing the proposed car's techno-economic feasibility before coming to a decision and drawing up a final joint agreement. For Renault, it was always the pricing of the car that it thought would be its selling point. Renault boss Carlos Ghosn was looking at a price of around $2500, to enable the car to compete with the Tata Nano.

On the other hand, Bajaj Auto has been emphasising more on the car's fuel efficiency. The car's design, originally created by Renault, has not been found to be up to the mark. The three companies are now planning a re-design. Meanwhile, the global economic slowdown has also led the companies to slow down a bit on the project.

This applies particularly to Renault, which has deferred investment at its new plant in Chennai and may be reluctant to make big investments in any new project.