New Delhi, May 3: Bajaj Auto on Monday said that it will roll out a car that will cost $2,500 (about Rs 1.1 lakh) in collaboration with joint venture partners.
Bajaj Auto had entered into a partnership with Renault and Nissan to develop an ultra low-cost car (ULC) in 2008, but the project got delayed due to differences between the partners over design and pricing.
Last year, the partners agreed to take forward the project by finalising respective responsibilities. While the Indian firm will be responsible for the design, development and manufacturing, Renault-Nissan alliance will take charge of marketing and sales of the ULC under their badge.
When asked if $2,500 is the agreed price for the ULC, as announced by the Renault chairman and CEO, Mr Carlos Ghosn, at his company’s annual general meeting last week, Bajaj Auto managing director, Mr Rajiv Bajaj, said, “Yes.”
This assumes significance as Tata Motors is finding it difficult to maintain the price of its Rs 1 lakh Nano due to rising input costs.
Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on Tata Nano, which is currently available in a price range of Rs 1.23 lakh-1.72 lakh (ex-showroom Delhi) for three variants.
Bajaj has, however, maintained that the first one lakh bookings will be delivered at the original price, while declining to comment on possibility of hiking it in future. Officials of the Renault-Nissan JV said that the ULC will be smaller than Maruti Alto.