Nano rival on schedule, says Bajaj

Bajaj Auto's endeavour to co develop a $2,500 rival to Tata Motors' Nano, in collaboration with Renault SA and Nissan Motor Co, is running on schedule the company said last week end. The car is slated to hit the market by 2011.

The project remains largely on schedule, though according to managong director Rajiv Bajaj some specifications have been reviewed in the course of development  leading to adjustments in the schedule. Bajaj denied that the project wasbeing delayed delayed by any significant period such as a year, as had been reported by some publications.

The statement was in response to an The Economic Times report that the project would miss its deadline as the company was seeking modifications to the work done so far.

The report also cited insufficient and slow investment infusion into the project by Nissan and Renault as another reason for the delay.

Bajaj has primary responsibility for the design, development, manufacturing, and supply chain management for the small car project.

Bajaj aid the Bajaj Auto was proceeding as per the original schedules to implement the project. He said whatever financial or other constraints that Renault-Nissan may have, had no bearing on Bajaj Auto's ability to implement the project.

Code-named ULC for ultra low cost, the Bajaj car is priced slightly above the Nano, which Tata Motors aims to sell at Rs1 lakh. However, reports say that Bajaj is concentrating on mileage, and hopes to deliver 30 km per litre.

The company believes that this will be the most important differentiator in this price segment of Rs1.5 lakh against the Tata Nano, scheduled to be launched next Monday.