Bajaj Low-Cost Car to Be Built in Waluj

The recently signed deal between French manufacturer Renault, its partner Nissan and Bajaj Auto will create, as the three have already announced, a new low-cost vehicle for the Indian market. According to Business Standard , citing managing director Rajiv Bajaj, the new model will be built at Bajaj's Waluj plant in Aurangabad.

Initially, it was expected that production of the model will be handled by Bajaj Chakan, but Rajiv Bajaj denied that. Additional info about the new facility were not released, Bajaj citing a confidentiality agreement it has with its partners.

“The company is investing Rs 500 crore in this project. It is confidential for Bajaj, Nissan and Renault and so, I will not speak much about it,” Bajaj told the source.

The agreement signed with the French and the Japanese states that the vehicle will begin to roll out in India in 2012. Although Renault has stated that the new car will not be targeting Tata's Nano, the $2,500 price the three manufacturers are aiming for is a clear statement of who the target customers are.

To function more like an original equipment manufacturer (OEM) exchange than a joint venture, the partnership considers an annual production target of 400,000 units.

“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,” Simon Sproule, Nissan-Renault Alliance communications director said when the deal was signed.