Bajaj remains to finalize plan for low-cost car

India’s Bajaj Auto remains to finalize its plans on a proposed ultra low-cost car to compete with the Tata Nano that the company plans to build in partnership with French automaker Renault and Japan’s Nissan. The Pune-headquartered two-wheeler major will consider a techno-economic feasibility report for the proposed budget-price passenger car, along with its two partners before deciding their future course of action. Bajaj Managing Director Rajiv Bajaj did not elaborate further on the project even as some senior company officials said something can be expected over the next few months. The proposed car is being seen as a close rival to Tata’s Nano, with Renault chief Carlos Ghosn speaking of a targeted price point of around US$2,500. Rajiv Bajaj has all along maintained that the car’s unique selling proposition will not be its price, but its extremely-high fuel efficiency. (August 14, 2009)