New ultra low cost car won't have Bajaj tag

Launch of upcoming ultra low cost car from Nissan-Renault-Bajaj partnership is expected to be delayed as Bajaj Auto has showed its lack of interest in branding the car.These developments took place at a meeting between Renault-Nissan alliance head Carlos Ghosn and Bajaj Auto Managing Director Rajiv Bajaj Monday. The company wants to focus on its two and three-wheeler business in India, said Rajiv Bajaj, Managing Director of Bajaj Auto. The ultra car will be fully manufactured by Bajaj Auto, though the marketing and selling will be taken care by Nissan-Renault JV.

Nissan-Renault intends to bring this highly-price competitive and fuel efficient product to the Indian market in 2012, said Mr Ghosn. All major investment in the project would also be determined by Bajaj Auto as it would be manufacturing the car, He added. According to Mr Ghosn the new car that company is going to bring, will share a lot of components and will share a lot of manufacturing capacity from the three-wheelers, so there is an economy of scale that is substantial, and a lot of the suppliers also will be common. So there is a common interest into making this a reality.

Commenting on the price of this new small car Mr Ghosn said that Renault is not fixated on the USD 2,500 price point and the price could be USD 2,500 or USD 2,800 or even USD 3,000. Both Nissan and Renault have invested heavely on their joint plant at Chennai. Where Renalut is planning to launch its Fluence and the Koleos, the Nissan is planning to launch its small car Nissan Micra in India.