Sunday, July 15, 2007

Bajaj may join hands with Renault

Nissan Renault boss Carlos Ghosn’s pet $3,000 car project could trigger off a new partnership for Renault in India with Bajaj Auto (BAL). BAL MD Rajiv Bajaj will meet top Renault officials in Paris shortly to discuss a possible partnership.

The small car partnership could be part of a larger alliance between Renault and Bajaj Auto covering commercial vehicles as well. Initial discussions on this front have already begun. When contacted Mr Bajaj refused to comment. Carlos Ghosn has already announced that the combine would develop a $3000 small car using Indian expertise. The car is Renault’s big pitch for global volumes after the Logan and will be positioned below it.

Renault’s current partner in India is Mahindra & Mahindra with which the French company has two separate joint ventures. Mahindra Renault, a largely marketing company, is in charge of selling Renault’s global low-cost sedan Logan in India. Sources say M&M is not interested in the $3000 car project because it’s long-term strategy is to be a global player in the SUV market.

(Source:Economic Times)