A proposed plan to make a low-cost small car with an Indian partner would be very important for Renault and Nissan Motor Co as the foreign firms seek to tap growth in emerging markets to help offset saturation in the main US and Japanese markets, Patrick Pelata, Executive Vice President of Renault said.

The Renault-Nissan combine is studying the feasibility of making a $3,000 car with Indian auto major Bajaj Auto, following the lead of Tata Motors, which last month unveiled the Nano, a car priced at just over $2,500.