Car costing less than Maruti 800 cannot be sold, Rahul Bajaj

Bajaj Auto company which excels in the two wheeler and three wheeler manufacturing and has captured as many as 50 countries in the world market is planning to come with a low cost car with Renautlt-Nissan.

Bajaj Chairman, released a statement in the India Economic Summit that, any car which will cost lower than Maruti 800 will not work in the market. He said that as per his son, Rajiv Bajaj any car cannot be sold less than 20 per cent of EBIDTA.

Tata Motors increased the price of its wonder car Tata Nano by Rs 9,000 due to the hike in raw materials and production cost of the vehicle. Bajaj Renault car which will be priced extremely low said that any company cannot sell cars lower than the operating margins. He said, a car which is less than Maruti 800 (Rs 1.9 lacs) is difficult to sell as car makers will not be willing to sell a vehicle at operating margins of 20 per cent or less. The ULC car (Ultra low cost car) from Bajaj Renault is under the development process since 2008 and is expected to launch by 2012. The car is speculated to be the direct rival to Tata Nano which is priced around Rs 1.1 lacs ($2,500).

See More Maruti 800 Pictures                                                                            Read More on Maruti 800

As per Mr Bajaj, this year, the company expects to sell as many as four million wheelers which include two and three vehicles. He added that, there is no point on focusing on selling 20,000 cars in one year. Only if 200,000 cars are sold in one year, then it can generate the desired profits.

Mr. Bajaj, not disclosing the price of ULC went on saying that, the new small car is manufactured with engineer's excellence will fetch a great fuel efficiency and will give a mileage of 30 kmpl. Well Bajaj Auto has not disclosed the price but from its partners Renault- Nissan it has always been heard that the car will be lowest in price in the Indian auto market.

In the Indian auto market Maruti Suzuki India, has captured the Indian small car segment. Maruti 800, which is priced between Rs 1.9 Lacs to Rs 2.3 Lacs (ex-showroom New Delhi), and the likes such as Maruti Alto, Maruti Ritz, Maruti Zen Estilo are the small cars from the Indian brand. Whereas the cheapest and the smallest Tata Nano, is priced at Rs 1.4 lacs.

Read More on : Maruti 800