Renault-Nissan To Release Low-Cost Car In India By 2012
Signed agreement with Bajaj Auto for building on an ultra-low-cost car, code-named ULC
Renault, Nissan and their Indian partner is expected to unveil an ultra low-cost car in India in 2012, which will be retailed at a price less than Tata Motor's Nano, reported Reuters.
Both the French and Japanese carmakers has signed an agreement with India-based Bajaj Auto for building on a May 2008 plan for an ultra-low-cost car code-named ULC, reported the source quoting Carlos Ghosn, chief executive of both Renault, Nissan.
Mr Ghosn continued that the Bajaj would handle the design, manufacturing and sourcing for the car. Renault and Nissan would handle the marketing of the car in India and overseas markets. The closest competitor for now would appear to be the Nano, the world's cheapest car.
GM plans to launch a small car for Indian market at the end of 2010, and Toyota is designing a small car for India that will be ready by late 2011. Ford intends to commence the production of a small car in India early 2010, although it has revealed that it would not compete directly with the Nano, reported the source.
Mr. Ghosn added that the companies has selected India for the project since it is one of the growing markets for autos, and is a good source for parts and products to be exported.
According to the terms agreed in 2008, Bajaj would own 50% in the project and Renault and Nissan would hold 25% each. Recently, the carmakers has revealed that Renault-Nissan is building a passenger car plant in Chennai in southern India with a capacity to make 400,000 units a year, reported the news agency.
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