New Delhi, May 5 (IANS): Bajaj Auto Wednesday promised a competitor to the Tata Nano by 2012 with a similar price tag of around $2,500 but better fuel efficiency in collaboration with global auto giant Renault Nissan.

"If people who ride two-wheelers have to move up to a four-wheeler, what is most important is that the monthly cost of ownership must be affordable. This is rooted in three parameters -- the price, the mileage and the maintenance," managing director Rajiv Bajaj told reporters here, unveiling the company's new range of three-wheeled passenger vehicles.

Asked if the price of the car will be around $2,500, as mentioned by Renault chief executive Carlos Ghosn, he replied in the affirmative.

"This four-wheeler we develop must deliver at least 30 km per litre, beacuse our experience with motorcycles has taught us that whether its power or mileage, unless one gets a fifty percent improvement it is not considered a improvement at all."

"Our intention with the car is to make a path-breaking performance and that's why we took the difficult figure of 17-18 km per litre associated with today's small cars and said that this needs to go up at least 50 percent to 30 km a litre."

The car was orginally scheduled to hit the roads this year, but the company postponed it to 2012 to conjure up a version that can be low on cost of ownership, fuel efficient and priced similarly to the Nano, which is currently available in a price range of Rs.1.23 lakh-Rs.1.72 lakh (ex-showroom Delhi) for three variants.

The Bajaj Auto unveiled its new range of passenger three-wheelers, RE 205D and RE 205M. The RE 205D will be available in two fuel variants CNG (compressed natural gas) and LPG (liquefied petroleum gas) and will be prices at Rs.1,27,300 (ex-showroom Delhi).

The RE 205M at a price of Rs.1,36,840 (ex-showroom Delhi) will also be available in CNG and LPG variants.