After Tata, now Bajaj-Renault-Nissan is in the field of manufacturing low cost luxury cars for middle class Indian families, a recent report has said. Tata’s Nano, the much hyped low cost next generation family car, had generated enough ripples few months ago, when Ratan Tata had offered a mechanized roadworthy car against a price of Rs. 1 lakh only. Integrity and success of the project, though, is yet to be tested when first lot of the vehicle will roll on the road later this year.To face nano-challenges imposed by the Tata in the domestic car market, all Indian car manufacturers now have a tough time planning and reorganizing their visions and work schedules. Carlos Ghosn of Renault-Nissan and Rajiv Bajaj of Bajaj Auto, sharing a common platform, have recently declared forming their partnership in manufacturing an ambitious low cost budget car to compete with the nano-growth effectively. If they are to be believed, their dream car may even hit the market with lower price tag than the Nano’s. They have presently fixed it @ $2,500.
The challenging car from the Bajaj alliance, of course, is not going to be available for the consumer’s use before mid 2011, whereas Tata’s Nano is scheduled to arrive in September-October this year. With the declaration of Bajaj group’s plan, Nano’s sales will certainly see some setback, as the proposed new car from Bajaj will be available with diesel option, along with the traditional petrol model. “Initially, it would come with a petrol version and diesel would follow”, the joint declaration said.
Full configuration of this new car, being referred as ULC’ has yet not been finalized, or at least not immediately made available for comments. The group has denied revealing full project details. However, Bajaj Auto will have 50% stake in the upcoming JV, while Renault and Nissan will have 25% each. After a great success of Logan, the group is even eying overseas markets for their new exotic car. Initially, the group will start manufacturing their ULC at the set up of Bajaj at Chakan, near Pune, Maharashtra, with a yearly capacity of 400,000 units.
