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“Bajaj will take care of the design, engineering, manufacturing and sourcing of our ultra-low cost car project while we (Renault-Nissan) will do the marketing and selling of the car for the Indian market as well as overseas market under a brand name selected by us,” Carlos Ghosn, president and chief executive of Renault-France and Nissan-Japan said at the India Economic Summit 2009.
“He (Rajiv Bajaj) is showing no interest in having his company’s name on the car,” Ghosn said.
However, this kind of arrangement between the Indian company and Renault-Nissan has not been formally signed as a joint venture and it may be termed as contract-manufacturing if Bajaj does not get into a formal agreement.
The cost to the two companies of the car would be lower than any car produced in the country, Ghosn said. That means the car would be produced at a lower cost than the current Nano, whose price ranges between Rs 1.12-1.85 lakh. However, the price to the consumer of the car may or may not be lesser or greater than the market price to the Nano.
“If current highest mileage of a car is 20 kilometers per litre..then our car is going to do much more than that,” he added.
“Bajaj with 2&3 wheelers is very successful here in the Indian market with its given level of increasing sales and profitability. Renault-Nissan is moving down from a segment of making our four wheelers,” Ghosn said.
Asia, South Africa and Asia would be a part of the exports plan for the ultra-low cost car amongst other targeted emerging markets.
Ghosn said all partnerships in India are ‘going well’ though he has not been able to meet Mahindra& Mahindra officials on his visit here.
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