Carlos Ghosn, Renault and Nissan chief executive, on Tuesday pledged that a low-cost car the group is planning to make with an Indian partner would be more economical to produce than the Tata Nano, the world’s cheapest car.

Mr Ghosn said the “ultra low-cost car”, which would be designed and built by Renault and Bajaj Auto, Nissan’s Indian partner, would also trump the Nano and any other car in the market on fuel efficiency. It would be launched in 2012.