Click it and Unblock the Notifications
Bajaj Low Cost For Small Car in 2012.
According to MD, Rajiv Bajaj of the Bajaj Auto India Ltd, There is no need for manufacturing or marketing JV, because our responsibilities are distinct and Bajaj wants to be a original equipment maker. This new decision to develop a cheaper car will make Bajaj increase its portfolio with the extension to four wheelers from the two-wheelers and three wheeler the company produces.
Previously, Bajaj eyed on taking 50% stake in a JV with Renault Nissan so as to build a Nano challenging car. But, that did not happen. As of now, Bajaj is helping partners see how the new small car project is turning out before making any full-fledged commitments.
With a good investment of 5 billion Indian rupees, Bajaj will develop the new small car by setting up a factory in Pune. As per the announcement early, Bajaj will roll out the small car in 2012. Rahul Bajaj mentioned that as car segment is new for the company, they are associated with Renault-Nissan so that they can take advantage of their distribution at least in some markets.
The MD also said that the small car platform will be used for building future products too, and the company focuses on providing a low cost car that would sum up to Rs. 5000 a month in financing, fuel and other expenses when compared to the Rs. 3000 for a two-wheeler.
Continue with Google