“We can perhaps fulfill our mutual objective through a simple OEM arrangement, and without the need to necessarily create a new corporate entity in the form of a JV,” Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told PTI.

Bajaj Auto had entered into a tripartite agreement with Renault and Nissan in 2008 to make small car with a price tag of  $2,500. He, however, said a final decision has not been taken yet and the three partners will together decide the future course of action. “A final decision will eventually be made jointly,” Bajaj said.

Bajaj said as part of the understanding reached last year between the two-wheeler major and Renault-Nissan, BAL will be responsible for development and manufacture of the ULC, the Franco-Japanese alliance will handle marketing and sales.

However, as per a memorandum of understanding signed in May 2008, Bajaj was supposed to hold 50 per cent in a joint venture for developing the car, while Renault and Nissan would be owner of 25 per cent stake each.