Bajaj Auto Forms Small-Car Alliance With Renault/Nissan
PUNE, India — Carlos Ghosn has not lost his fascination for the concept behind the Tata Nano a modern, low-priced car for emerging markets, as embodied in the revolutionary $2,500 hatchback unveiled earlier this year to global acclaim.
Ghosn may finally have come up with a worthy alliance partner for developing a potential rival to the Nano. His Renault/Nissan group, as expected, has forged a partnership with India’s Bajaj Auto, that country’s largest manufacturer of cheap three-wheeled motorized vehicles.
The companies said they will develop, build and market a new small car, code-named ULC for “Ultra Low Cost,” with wholesale prices starting at $2,500 — the same price segment as the Tata Nano. Sales of the ULC will begin in India in early 2011, the partners said.
The Nano is slated to go on sale late this year in India.
Bajaj, which is expected to supply a small gasoline engine for the ULC, will own 50 percent of the new joint-venture company, while Renault and Nissan each will own 25 percent. The partners will build a new plant in Chakan, in Maharashtra state, not far from Mumbai and Bajaj’s headquarters in Pune. Initial production capacity will be 400,000 vehicles a year, and the partners expect to sell the vehicle in other emerging markets around the world.
Renault already builds a relatively low-cost vehicle range under the Logan and Sandero names, in partnership with its Romanian subsidiary Dacia. Versions of the Logan/Sandero are built around the globe, priced in some markets from around $7,500.
What this means to you: You will never see these cars on U.S. streets. But the lessons learned could eventually filter down — or up — into other future models offered in the States. — Paul Lienert, Correspondent