It's been more than two years since we first got wind of the Renault-Nissan-Bajaj deal to collaboratively produce one of the world's cheapest, most fuel-efficient vehicles. Despite the delay, the ultra-low-cost car project is far from dead. In fact, the three companies have made progress on the vehicle's development and finally made their tie-up official by signing a three-way Memorandum of Understanding (MOU).

The MOU outlines how the Renault-Nissan-Bajaj deal will work and it's not all that different from what we've reported before. Bajaj will handle the design, engineering and manufacturing of the ultra-efficient new vehicle and Renault-Nissan will help with marketing and distribution. When the new vehicle finally appears, we expect that it will slot in around $3,000 with mileage numbers somewhere near the 70 miles per gallon mark. The release has been pushed back to 2012, and that date is subject to change as development progresses along. If you're waiting to get your hands on a U.S.-version of this ultra-efficient vehicle, then you'll probably be disappointed to learn that distribution is for emerging markets only.

[Source: Renault-Nissan via Green Car Congress]

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