Putting an end to rumours doing rounds about the ultra-cheap car project from Bajaj and Renault Nissan, the three companies inked an official statement to produce the car and launch it in the Indian market by the year 2012. The low cost car will be designed and developed by Bajaj Auto while the marketing and sales will be handled by Nissan-Renault under its own brand umbrella. “The signing of the MOU follows discussions between both partners to define the product, manufacturing plan and distribution agreements,” said the companies.
According to Simon Sproule, Director, Communications for Nissan-Renault Alliance stated that the project is ‘in the working phase.’ “We have expertise in certain sectors of the market and other manufacturers have better expertise in others. Which is why we are working with Bajaj at the entry level, low cost market, given their experience in making motorbikes, scooters and three-wheelers at a very competitive price,” he said.
Rajiv Bajaj, managing director, Bajaj Auto had earlier stated that there was no need for a joint venture as the companies can work as a tri-partite agreement and roles of each one of them will be clearly defined.
