Renault-Nissan alliance announces deal with Bajaj

After months of delays following differences over their ultra low-cost car’s branding, concept and pricing, joint venture partners Bajaj Auto and Renault-Nissan signed an agreement formalizing roll-out plans for 2012, a year behind schedule. Under the agreement, India’s Bajaj Auto will handle design, engineering, sourcing and manufacturing. Marketing, including the car’s branding, and parts sales will be handled by the Renault-Nissan alliance. “The cost of this car would be lower than any car today made in India,” said Carlos Ghosn, CEO of French auto major Renault and Japanese carmaker Nissan. The Bajaj-Renault-Nissan car, which is pegged in the same segment as the recently launched Nano by Tata Motors, will be “competitively priced” at the entry level and have a better fuel mileage than 20 km per liter, he said. India would be the primary market for the car, but exports to other emerging countries could be explored, Ghosn said. (November 11, 2009)