India is one of the fastest growing automobile markets. So,most of the companies want to set up their business in India. In this context, Bajaj in coordination with Renault-Nissan wants to produce a new ultra low cost (ULC) car.
For producing the vehicles for their exclusive needs Renault-Nissan and Bajaj Auto are expecting to share their platform, according to the signing of MoU in 2008 between the three companies. They want to introduce ultra cheap car in India by 2012. The various services are being shared by both the companies, Bajaj Motors is used for designing, developing, manufacturing the car where as the Renault- Nissan will handle the marketing , sales services of the car.
The partnership for the ultra low cost project will be 50:25:25 for all the three companies Bajaj, Renault, Nissan respectively.
For manufacturing this car instead of using Chakan Plant near Pune, the company is planning to rollout this model are Waluj plant near Aurangabad. Bajaj is planning to invest Rs.500 crore for this project out of the total cost of Rs. 2000 crores. For acquiring the land for this project, the company already got 250 acres and 100 more acres was requested to the government of India.
The ULC project plays an integral part in their strategy. The special of this ultra low cost car will be its mileage and it is 30 km to a liter. The cost of the ULC car is expected to be around 3000 US dollars. The development of this car is progressing well and the car is expected to be in maket by 2012.