Bajaj ready with the most fuel-efficient engine

Bajaj in association with Renault-Nissan, a joint venture between three car companies has produced the most economical and least polluting  Car engine. These 3 companies have developed this engine for the new small car they are planning to launch in the year 2012. This car is speculated to compete against the cheapest car in the country Tata Nano, priced at Rs 1.23 (ex-showroom price). The companies want to come up with a fuel efficient and less-polluting car that is economical to own. The car would give a mileage of 30kmpl and after a km long run would emit less than 100 grams of carbon dioxide (CO2), which is going to be an amazing environment friendly move. Bajaj officials cleared the speculation that although the car would be a low-priced car but that would not mean limited features and the cheapest car. The idea is to make a good car with the minimal production cost.

With the input prices rising constantly, Tata Nano is expected to get a price hike, which would mean a direct competition between Tata's and Bajaj. Presently it is Tata Nano that is the cheapest and the least-polluting car. With the entry of this small car from the JV of Bajaj, Renault and Nissan, Nano would find a tough competitor.

Today it takes about Rs 2,500 to Rs 3,000  to maintain and run a motorbike in India and around Rs 8,000 to Rs 10,000 to run a small maruti Car. The idea behind this venture is to upgrade the Indian users to a four-wheeler without having to spend much. The small car segment is becoming the most lucrative segment in India and most of the automobile players are tracing their ways to enter into the segment.

9.3 million two-wheelers were sold in the year 2009-10, according to the Society of Indian Automobile Manufacturers (SIAM) which shows the easy spend range of majority of Indians. If such cheap and good quality cars are going to enter the car market in India, it is pretty sure that most of the people would like to upgrade to a four-wheeler, said Rakesh Batra, national leader (automotive practice) Ernst & Young.

Nissan is coming with its latest venture Nissan Micra in India soon. Renault does not have any car presence in India except the partnership in Logan. Bajaj has been doing pretty well in the two-wheeler segment and is entering the four-wheeler segment with this small Car. Thus, the venture is sure to give a good market share to all these auto-majors not having much stake in it presently.