Bajaj Auto in collaboration with French auto major Renault and Japan's Nissan is on the edge of finalizing the proposed ultra low-cost car that the company plans to build in partnership.

Bajaj, a major two-wheeler company is for the first time enters into a car industry, and will consider a techno-economic feasibility report for the proposed budget-price passenger car along with the other two partners before deciding the future course of action on the project. 

As per the company having its head-quarter at Pune, “The techno-economic feasibility for the passenger 4-wheeler will be evaluated by Bajaj-Renault-Nissan for a final decision, leading to firming up of the co-operation parameters among partners and a suitable JV agreement”. 

Senior officers said work on it was on and something can be expected over the next few months. But Bajaj managing director Rajiv Bajaj did not revealed the details. The car is going to be in competition to Tata Nano, Carlos Ghosn, Renault boss said of a of a targeted price point around $2500. Rajiv Bajaj has not decided to concentrate on just the price of car but also its extremely-high fuel efficiency.  

An official from Bajaj's foreign partners said asking anonymity, “We are going back to the drawing board to have a rethink on the design”. The official said the companies were firming up the various specifications for the car as they go about giving a new shape to it. 

The project has another problem i.e. global slowdown. Even Renault with its group company Nissan has slowdown its manufacturing due to this. The analysts said, that thus there could be reluctance from the company's side in making big investments on any new project.

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Posted by Naresh Koshti on 17 August, 2009 5:05:27 PM IST #