Announced ever since November last year, the partnership aims to build a low-budget model that will be released in India in 2012. With the clear intention of taking on Tata's Nano (a fact officially denied by Renault), the ULC, as it is currently known, will be priced at around $2,500.
According to Simon Sproule, Communications director for the Nissan-Renault Alliance, the partnership between the French-Japanese and Bajaj will not be a joint venture, but rather an original equipment manufacturer (OEM) exchange.
“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.”
Production of the model, as announced last year, is expected to be handled by the Bajaj Chakan, with the production target set at around 400,000 units a year. According to some sources however, Bajaj will create a new facility in Pune to handle the production of the model in which it will invest 5 billion rupees.
As the deal with Bajaj was being signed, rumors about another partnership for a small car being in the works, this time with Ashok Leyland, surfaced. Sproule told bsmotoring.com however that, for the moment, Renault's involvement with Ashok will be limited at manufacturing commercial vehicles.
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