There has been a great time of partnership with three companies from three different nations have come together for a joint project to make an ultra-low-cost car. France’s second-largest carmaker, Renault SA with Japanese Auto maker Nissan has joint with the Indian Auto company Bajaj Auto; they have signed an agreement delineating their roles and fixing 2012 as the year when the ultra-low-cost car will hit the market.

The small car is now slated to be launched in 2012 and will be manufactured by Bajaj. 

The Renault-Nissan head, Carlos Ghosn told at the press conference at the India Economic Summit in New Delhi, “Bajaj would handle the design, manufacturing and sourcing for the car; Renault-Nissan would look after marketing in India and overseas. It is much better that we take leadership in marketing and selling of products”. 

“We now have a clear definition as to who does what. The new car will be competitive both in terms of cost and fuel efficiency. The solution that our teams have found will address both,” said Mr Carlos Ghosn. He added, “It will be an innovative product”. 

Mr Ghosn commented on the expected price of the small car, , “We would like it to be the entry price point for Renault and also the industry. We are practically sure that the cost of the car will be lower than any car made in India.”

The brand under which the car will be sold will be selected by the Ranualt-Nissan Alliance, he added.

Moreover, this ultra-low-cost car made by the JV will give a tough competition to the Tata Nano and other small cars.

Bajaj and Renault-Nissan had announced the formation of a joint venture in May 2008 to develop, produce and market a car code-named ULC.

However, differences erupted between the partners on a host of issues, including branding, styling and price point but are now very clear about it. The company’s strategy in India is not short-term, but long-term. Renault-Nissan has a 10 per cent share (of the car market) globally. The Renault-Nissan is targeting India as a major market and thus planning to launch for it, specially.

Related News:
Nissan – Bajaj small car on the way!
Nissan to Built Tata Nano like Small & Cheap V-Car
Nissan’s ‘Scratch Shield’ paint to be applied to mobile phones
Nissan Starts Registration for Handraisers of Nissan LEAF EV

Related Books:
Ultra Low-Power Electronics and Design
Ultra-Low Voltage Nano-Scale Memories
Cheap?: The Real Cost of Living in a Low Price, Low Wage World

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Posted by Naresh Koshti on 11 November, 2009 12:56:18 PM IST #