Bajaj Not Building Small Car For Renault-Nissan

Bajaj Small Car
Bajaj Auto has reportedly decided to shelve its project to develop a small car for Renault-Nissan. The company has said that the ultra low cost car would not be commercially viable. Bajaj Auto MD Rajiv Bajaj has said his company was not going to enter the low-margin small car market.

Bajaj Auto intends to use the platform developed for the low cost car to build an inexpensive commercial vehicle that will be unveiled by January. If this vehicle is successful there might be a possibility of Bajaj eventually building a car out of it.

Bajaj had signed an agreement with alliance partners Renault-Nissan to develop a ultra-low cost car. The Franco-Japanese alliance was not keen to tarnish its image if the Bajaj small car did not match its quality standards. Renault India boss Marc Nassif had categorically said earlier that his company would not accept Bajaj's small car if it did not match Nissan's DNA.

The small car's design, sourcing and manufacturing was to be handles by Bajaj while the marketing it in India and across the globe would be taken care by Renault-Nissan. This ambitious project was seen as a competitor to the Tata Nano.

If the reports about Bajaj not building a small car are true,then the Tata Nano will truly not have a competitor. Company representatives from Bajaj and Renault have not commented on this development. However Nissan's spokesperson in Tokyo Simon Sproule said that the partners would be facing certain milestones in making decisions for the project in the next few weeks.

Article Published On: Friday, July 15, 2011, 11:42 [IST]
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