Renault-Nissan to slowly pace up on ULC car project partnered with Bajaj Auto

Thursday 08 March 2012, 11:57 AM by Vikas Yogi

The strategic partnership of Renault-Nissan, which was longing for the launch of Ultra Low Cost (ULC) car in the high potential small car market in India in collaboration with Bajaj Auto, will be further deliberating on procuring a small four-wheeler from Bajaj Auto. The reason for the delay is that the Renault-Nissan alliance is still analyzing the product utility and potential aspects.

Renault-Nissan entered into an agreement with the Indian automotive firm in 2009, which clarified that Bajaj Auto will be handling design, development and manufacturing of the ULC car agreed to be sold under the alliance’s tag. In 2010, a Memorandum of Understanding (MOU) was signed between the parties requiring Bajaj Auto to showcase their ULC car project.

Mr. Carlos Ghosn, the Chairman and CEO of the Renault-Nissan alliance was quoted as saying, "Indian market is a very new market for us, we are investing a lot. Some partnerships are successful, some partnerships did not work. Some partnerships are working very well. Renault's association with Mahindra did not end very well, but Nissan association with Ashok Leyland is very good,"

At the 2012 Delhi Auto expo earlier this year, Bajaj Auto unveiled its commercial four-wheeler vehicle, RE60 that is being developed by the firm but is unsure whether or not it will be sourced by the alliance.

Even Renault-Nissan provided a restrained response in the statement given by Mr. Ghosn, mentioning that they are cautiously stepping up the project since the market is new and much time is consumed in analyzing the product and the final decision will be taken on the basis of the version demonstrated by Bajaj Auto.