Renault-nissan And Indians From Bajaj Auto
Renault-Nissan and Indians from Bajaj Auto officially announced they will produce a $ 2500 model.
After Tata Motors shocked the car world with the $ 2500 model, Renault has no plans to stand and watch. The French have officially announced that they will produce a rival for Tata Nano in 2011.
The French group appealed this way to get help from the Indian partner from Bajaj Auto, which hold close collaboration since last year. This way, Renault-Nissan and Bajaj Auto will set up a joint company who will produce low cost model and will be priced starting at $ 2500.
The new company will be owned 50% of Bajaj Auto, Renault and Nissan following each of them to keep 25% stake. The French and Indians have already announced that the new car will carry codenamed ULC and will be sold first in India.
But shareholders will not stop here, intending to take advantage of a global distribution of the $ 2500 model. The Three Big manufacturers have not announced another the future brand name, all we know at this moment is that factory who will produce the new ULC will help the market with 400,000 units each year.
Although today does not exists, the factory where will assemble the future Renault's low cost will be built by 2011 in the village of Chakan in India.
According to information provided by the French and the Indian officials, the project has undergone feasibility studies and came to the attention of production department, until now the target for this model cost is reached.
Regarding the information published, both companies signed contracts and they focus on the rules of production, testing and distribution of the model, mainly for emerging markets. The project goes as another step that confirms interest of Renault-Nissan and Bajaj Auto to compete with the revolutionary Tata Nano.
by: Robert Downey