Latest Car News in India

Wednesday, July 20, 2011

By Pranjal Gera

Bajaj Auto's small car Shelved

Bajaj Auto Ltd., India’s second leading two wheeler makers, announced its plans for ultra low-cost car with Renault-Nissan Alliance as not feasible but later changed its stance saying the project was on.

According to reliable sources, Spokesman of Bajaj Auto Ltd. while reporting the company’s quarterly results said that the Company has no intentions to get into low-margin passenger car business. Earlier, Bajaj Auto signed a memorandum of understanding (MOU) with Renault-Nissan alliance to develop an ultra low priced car like Tata Nano. The Company informed the Chief Executive Renault-Nissan, that the project for ultra low cost car is not practical in November 2009 but later Bajaj Auto Ltd. clarified that the project is still on.

The Four Wheeler platform (Passenger and Commercial both) will be presented in January 2012 to Renault-Nissan alliance. Bajaj Auto Ltd. has plans to remain in the commercial vehicle business while Renault-Nissan might decide to take care of Passenger car business.

Reported by an Industrial source, The Partners are having differences since the beginning and there have been conflicts and doubts about the success of the project for a long time. In May, Renault India Chief announced that if the ultra low cost car manufactured by Bajaj Auto Ltd. failed to meet their expectations, they might pull out of the project. Renault stated in June that the Company might decide to carry the project without any partners.

In the nutshell, there have been differences among the partners since the beginning and the partners never agreed to sign the joint venture for the grand project.

Some of the popular hatchback models in the Indian auto market are Toyota Etios Liva, Ford Figo, Maruti SwiftHyundai i10, Chevrolet Beat and Volkswagen Polo. Apart from these popular models, cars going to hit the Indian roads this year are Chevrolet Beat Diesel, Maruti Cervo and Honda Brio.

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