Friday, September 23, 2011
By Pranjal Gera
Nissan-Bajaj alliance still in questions
Nissan's plans of alliance with Bajaj Auto don't seem to be working out well. Nissan, in a statement said that it is still in talks with Bajaj Auto for development of a low-cost car. According to the statement given out by the company's Vice President Giles Normand, the company is holding talks with Bajaj Auto, and the next announcement would be a joint announcement.
The sources have revealed that the plans of the alliance are proving furitful, as the company is not satisifed with Bajaj Auto's slow progress in the project. If this doesn't work out, Nissan might go on with the idea of developing a low cost small car for the Indian market, on its own. At this time, Nissan is studying the Indian market and the prospects of launching a new small segment car.
Nissan is already working in alliance with Renault and together they signed a MOU with Bajaj Auto, three years ago. They wanted Bajaj to develop a really low cost car for India by the year 2012. Bajaj was supposed to design and manufacture the car. But, it seems that Bajaj Auto has not been able to live up to Nissan-Renault's expectations.
Nissan launched its much awaited car Sunny Sedan yesterday. It is available in three variants and has been priced in the range of Rs. 5.78- Rs. 7.68 Lacs. The Nissan Sunny Sedan is expected to increase the volume of sales for Nissan.
Working together, Nissan-Renault alliance is setting up a plant in Chennai and investing Rs. 4,500 crores for the same. The production unit, when ready to roll, will be able to produce four lac units a year.