Nano’s got competetion! A joint venture between Indian two-wheeler major Bajaj Auto and Nissan-Renault is planning to launch a ULC Car in India whose expected price is 2500$. Bajaj will have 50% stake in the JV and both Renault-Nissan will have 25% each.
The Compact Car will have 70-80% of its parts in common with those used in Bajaj’s scooters, motorcycles and three-wheelers. This will help cutting down the project cost for the new car from Rs 1,500 crore to around Rs 200-300 crore.
The mileage of the car will be well above 20 kmpl but Bajaj will be targetting 30 kmpl. The JV sees people who need an upgrade from a 2 wheeler to 4 wheeler as prospective buyers so the main focus is on lowering the monthly cost of ownership. The car is expected to hit the roads in the year 2012.