India’s second largest two wheeler manufacturer and Renault – Nissan have joined forces to make a small car that will compete with Tata Motor’s Nano. Nano is the world’s cheapest car and will be on the Indian roads by Diwali this year.
The new joint venture will be 50 per cent-owned by Bajaj, with Renault and Nissan, each owning 25 per cent. The carmakers plan to produce a vehicle that will cost about $2,500 before taxes – the same price at which Nano will be made available.
The small car – codenamed the ULC (ultra-low-cost) – will be made and sold in India, with the first models due to come on to the market in early 2011. An initial production capacity of 400,000 units a year is planned. The manufacturers hope to export the car to other emerging markets using Renault-Nissan’s established global sales network.
