New Delhi, Nov. 10 Indian carmaker Bajaj Auto has signed an agreement with Renault-Nissan Alliance to manufacture and market an infra low-cost car that would hit the market in 2012.

"We've been working for a long time on infra low cost car that should come to India but could also be exported from India. I have the pleasure to say that yesterday we made an agreement, the infra low cost car will come to the market in 2012," Renault-Nissan CEO Carlos Ghosn announced on Tuesday.

"We have now a very clear definition not only of the product in term of cost, in term of geometry, but even in term of fuel efficiency and I think it is going to be a very innovative product and a very competitive product, compared to what exists today in the market," he added.

The design, manufacturing and sourcing for the car would be done by Bajaj, while the Renault-Nissan will look after marketing in India and overseas.

"The design, the engineering, the manufacturing, resourcing of the product will be made by Bajaj with the support of Renault-Nissan alliance. When it comes to marketing and selling the product, this will be done by Renault-Nissan under a brand which will be selected by Renault-Nissan," Ghosn said.

Bajaj and Renault-Nissan had announced the formation of a joint venture in May 2008 to develop, produce and market a car code-named ULC.

Renault in partnership with India's Mahindra and Mahindra had launched the low-cost Logan car in 2007 in the country that started off well, but healthy sales soon began to dwindle, with high taxation making the car expensive for its target market. (ANI)