Bajaj Auto dumps plans for small car

26 Dec 2009

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Refusing to get into competition with Tata Motor's mini-car Nano, motorcycle and three-wheeler manufacturer Bajaj has scrapped its plans to make a low-priced small car, The Economic Times today reported.

Rahul BajajThe report quoted Rahul Bajaj, chairman of Bajaj Auto Ltd, as saying in Nagpur that the company no longer finds it ''a good idea''.

Bajaj Auto had earlier announced plans to launch its provisionally-named ''Ultra Low Car'' (ULC) in 2011. It was planned as a joint venture with Nissan and Renault, and would have marked Bajaj's foray into the car market. The price-tag was to have been similar to that of the Nano.

According to the report the plan has now been firmly shelved, reportedly at the instigation of managing director Rajiv Bajaj.

''There appears to be no point in launching a new car when there are already so many models in the market, from the Mercedes to the Nano. We did want to launch a low-cost car but now we have changed our mind,'' said Rahul Bajaj.

Unlike the Tatas, the Bajaj group has apparently decided that the 'ULC' would be a stand-alone project and as a result, too vulnerable to fluctuating market conditions.

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