August 29, 2008

Bajaj, Renault and Nissan sign JV for small car project

It is reported that after 6 months of negotiation, Bajaj Auto has announced its JV with European car maker Renault and Japanese giant Nissan to manufacture a small car in India with a wholesale price tag of USD 2,500.

A tripartite JV will be formed in due course, in which Bajaj will hold 50% and Renault and Nissan 25% each. Bajaj will oversee the design, engineering and manufacturing of the ULC. The three companies will shortly sign a MoU with the Maharashtra government for the plant, which will come up in Chakan. The Maharashtra government had already earmarked 500 acres of land, of which around 200 acres will be reserved for a vendor base.

The car, code named ULC, will hit the roads in 2011, three years after TATA Motors' Nano, which is expected to launch in October 2008 and is priced at around INR 100,000.