Bajaj Renault-Nissan's 'Ultra Low-Cost Car' for emerging markets will be built, despite a company spokesman admitting last week that it was struggling to engineer the car.

At the Geneva motor show Nissan's executive vice-president Collin Dodge confirmed that neither it nor partner Bajaj Auto has found engineering solutions for the proposed car.

"It is over two years that Bajaj is trying to produce the car. The physics of it is very difficult. We have not yet found a solution as there are lot of engineering solutions required," Said Dodge.

But a spokesman for Bajaj Auto has dismissed speculation that this may mean the Tata Nano rivaling project won't go ahead.

"The partners are aligned to the project and to the agreed objectives. The project is proceeding as planned," Bajaj Auto vice-president of business development S Ravikumar said.

Nissan, Renault and Bajaj Auto had agreed in 2008 to manufacture the car, which should cost from
Rs 1.5lakh onwards. The new model, which will compete with the Tata Nano, is expected be launched in 2011.