French car manufacturer Renault and Bajaj Auto have agreed to value the ultra low cost (ULC) car that they are building together with Nissan at $2,500, (approx. Rs 110,000) to rival Tata Nano.
Carlos Ghosn, Renault president and CEO said, “In India, Renault and Nissan are developing an ultra low cost vehicle with the Bajaj group, benefiting from its expertise in the light vehicles and the knowledge of the Indian market. We are aiming for a price of $2,500”.
When queried if this is the agreed cost, Bajaj Auto MD Rajiv Bajaj replied in the positive.
In this way, the partners have solved the problem of pricing, which has been broadly guessed as the cause for delaying the project announced in 2008. While Renault is interested in a cheap car, Bajaj is looking for a car with high mileage and low maintenance.
Previously, the car was meant to enter the market this year, but it has been delayed to 2012. It will rival Tata Nano, which is presently sold in a price range of Rs 123,000-172,000 (ex-showroom Delhi) for 3 models.
Last year, while on a trip to India Ghosn had announced finalization of the project and claimed “as per the agreement, the design, engineering, sourcing and manufacturing will be handled by Bajaj Auto, while marketing and selling will be (done) by Renault-Nissan Alliance.”
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