Fresh doubts arose about the ultra low-cost car (ULC) under development by Bajaj Auto in collaboration with Renault-Nissan when Rajiv Bajaj, Managing Director, Bajaj Auto Ltd reportedly said “We don’t intend to get into the low-margin (passenger car) business” while talking to reporters after announcing the Company’s quarterly results.
However, Bajaj Auto announced later that the project had not been called off. It is not known whether the later announcement was an exercise in damage control.
A spokesperson of Renault India refused to comment in the matter.
S Ravi Kumar, Senior VP (Business Development), Bajaj Auto is reported to have stated: “We would like to clarify the Bajaj-Renault-Nissan project is very much on.” He is also reported to have said “The new four-wheeler platform, which will have commercial and passenger applications, will be showcased to Renault-Nissan in January 2012.”
Reports have been surfacing periodically about the reservations of one or the other partners in the joint venture regarding the project and the possible discontinuation thereof.
As late as May 2011, as reported by us, Marc Nasif, MD, Renault India said that they might withdraw from the project if the ultra low-cost car did not meet their expectations. He went on to say in june 2011 that Renault might develop a low cost car indepently.
Considering that Bajaj and Renault-Nissan have not entered into a formal agreement for the joint venture to develop the ultra-low cost car, the possibility of the joint venture being abandoned looms large in the public mind. The latest statement by Rajiv Bajaj continues to cast a doubt on the future of the project despite the later statement from Baja Auto that the project has not been abandoned.
Tags: Bajaj-Renault-Nissan
