Renault and Nissan To Take On Tata

India is laying down their bicycles and getting into their first cars, and Renault-Nissan aren’t going to let Tata’s upcoming Nano have the market to itself. Only a few months after India’s largest automobile company announced they were going to build the world’s cheapest car, Renault-Nissan have announced plans to build low-cost competitor.

The new car, code named ULC, will be built as a joint project between Renault, Nissan, and domestic company Bajaj Auto, at a new plant in Chakan, India. At an expected cost of around $2500 U.S., the ULC follows the exact same line expected for the Nano’s pricing.

The ULC is expected to hit the streets of India in 2011, with the future possibility of exporting to other emerging auto countries. The Nano, which is expected later this year, will get a few years of exclusivity at home, and may already be testing foreign markets by the time the ULC starts coming off the assembly line.