Bajaj Auto, Renault-Nissan alliance to build ultra-low cost cars at Chakan plant
12 May 2008
Pune: The joint venture project between Bajaj and Renault-Nissan alliance is all set to commence plans to build a new car in collaboration for the India market, Rajiv Bajaj, managing director of Bajaj and Carlos Ghosn, president and CEO of both Renault and Nissan, today announced.
The new joint venture will be 50 per cent owned by Bajaj Auto, while Renault and Nissan will acquire 25 per cent each.
India is one of the leading automobiles market in the world with passenger car sales, which doubled in the past five years, expected to reach 3 million cars annually with the introduction of low-cost cars.
According to the agreement, a new production plant will be set up in Chakan (Maharashtra) in India, to built the new car code-named ULC (ultra -low cost) cars. The production capacity of the plant would be 400,000 units per year, with sales expected to start in early 2011. Initially the cars will be sold in the domestic market, with growth potential in other emerging markets around the world.
The companies say their entry-level ULC will be priced at $2500, which will directly compete with the Tata Motors produce Nano.
In 2007, Bajaj Auto and Renault started preliminary discussions for beginning the small car project together and have since brought in Nissan as a partner in the development programme.