Bajaj denies news of shelving the ULC project with Nissan and Renault

Earlier there were reports in the auto market that Bajaj Auto’s plan to manufacture a four wheeler for Nissan and its associate partner, well-known Renault  was canceled. But, now as per Bajaj Auto, that project is back on track yet again. The previous news of shelving the project of developing an economical mini car with Renault , Nissan  gave a little setback. And the reason given to terminate the small car project was that it wasn’t commercially viable.

But now, according to the senior VP of business development of Bajaj Auto, Mr. S Ravi Kumar, the economical mini car project with Renault and Nissan is very much on and hasn’t been shelved. He also told that this new mini car platform will have both passenger as well as commercial applications that will be demonstrated to Nissan And Renault  in the month of January 2012.

In the year of 2010, Renault-Nissan, both signed a MOU also known as Memorandum of Understanding with Bajaj Auto, who stands tall on the 2nd position in the list of the best two-wheeler manufacturing firms in India. This MOU was signed to create an economical car for the country and also for other booming markets and planned it to release it in the year 2012.

If reports are to be believed, this car will give a very tough competition to Tata Nano, which is currently the most economical car in the world today. The sourcing, manufacturing along with the design of the economical mini car would be done by Bajaj Auto and the marketing in the country and abroad will be done by Renault-Nissan.

With this project, Bajaj Auto will be here in the profitable space of this business, whereas Renault-Nissan will be accountable for the personal transportation application. However, the main point that causes basic concern in this project is the viability of the car. But both Nissan and Renault had agreed and are working on the new platform for this ultra low-cost car.