Bajaj Auto to lead small car project
Bajaj Auto is set to lead the three-way exclusive global alliance with Renault-Nissan for the USD 3,000 small car project, reports Economic Times.
According to the current agreement, Bajaj will lead the project and Renault-Nissan will support it, sources said. Bajaj will be engaged in the development and manufacturing of the car and it will also be taking charge of its marketing and distribution, using its existing network of two-wheeler dealers.
The alliance with Bajaj will only focus on light vehicles, both passenger and cargo. This means, Nissan may be looking for another Indian partner to market and distribute its high-end range of cars.
Carlos Ghosn of Renault-Nissan is all set to visit India next week to formally announce Nissan`s commercial vehicle partnership with Ashok Leyland. He will be meeting the Bajaj brass on October 29 and will also be visiting its Chakan plant.
Bajaj is likely to seek support from both Nissan and Renault on the development of the USD 3,000 car. More support may be taken in cases like the chassis and body design and less in the case of engine and transmission. Currently, a feasibility study is on and a formal decision will be taken in the next two months. The study may look into areas such as badging, marketing and distribution rights, branding, royalty and other such details, sources added.
Renault-Nissan`s alliance with Bajaj will also covers light commercial vehicles. The competing products from Nissan-ALL and Nissan-Renault-Bajaj may hit the market alongside products from Mahindra & Mahindra, Piaggio and others.
The company is a leading two and three-wheeler manufacturer in
Shares of the company gained Rs 15.5, or 0.62% to settle at Rs 2,495.65. The total volume of shares traded was 89,648 at the BSE. (Thursday)
