Bajaj drops small car plan for Nissan and Renault

Bajaj Auto is one of the most eminent and prominent auto manufacturers in India. Earlier, Bajaj Auto had plans to develop an economical small car for Nissan and Renault in India. But now if rumors are to be believed, this project of developing economical mini car has been dropped, reason being that this car is said to be commercially unviable.

As per Mr. Rajiv Bajaj, the MD of Bajaj Auto Ltd, another major reason why this project has been shelved is that Bajaj Auto has no plans to develop a low-margin traveler car business. The firm will rather reveal an economical commercial vehicle in the month of January 2012.

The memorandum of understanding a.k.a MOU was signed by Renault and Nissan collaboration in the year of 2010 with Bajaj Auto Ltd to create an ultra economical mini car for the country and other flourishing auto markets, the company had planned to release it around 2012.

If the car was developed, this would have become the biggest threat to Tata Nano, which is currently the cheapest car in the entire world. All the manufacturing, sourcing and design had to be been done by Bajaj Auto Ltd and the marketing in the country and abroad would have been done with Renault-Nissan.

As per a spokesperson of Nissan, Mr. Simon Sproule, if in case the decision is revived again then it could certainly create waves in the auto market of India. But, as per the reports till now, this small car plans have been terminated.

Both Renault and Nissan are renowned car manufacturers in the country today. They have made its consumers happy with power-packed and stylish cars. Nissan has cars like Nissan Micra, Nissan 370Z, Nissan Teana and Nissan X-trail. On the other hand Renault recently launched Renault Fluence in India under its badge and plans to launch four more cars in the coming time. The company is also expected to launch Renault Duster SUV in India soon.