The project remains largely on schedule, though according to managing director Rajiv Bajaj some specifications have been reviewed, leading to adjustments in the schedule. Bajaj denied that the project is being delayed by any significant period such as a year. Bajaj has primary responsibility for the design, development, manufacturing, and supply chain management for the small car project.
,/br> Code-named ULC for ultra low cost, the car is priced slightly above the Nano. However, Bajaj claims the focus is on mileage, and hopes to deliver 30km per litre. Bajaj says, “The key issue that Bajaj has addressed, in consultation with Renault-Nissan, has been towards the purpose of ensuring that this car will, true to its originally intended brief, be positioned not on low price but on high fuel economy. A breakthrough in fuel economy has thus been achieved and will serve as a powerful competitive edge in differentiating this product from its potential competitors.”

The company believes that this will be the most important differentiator in this price segment of Rs 1.5 lakh against the Tata Nano, which is all set to notch up a new-car booking record.