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Venture with BAJAJ

A new car is all set to hit the Indian roads, this car is being built by a joint

venture by a few big names in the automobiles industry, i.e. Bajaj and Renault-

Nissan. Bajaj Auots would be having 50% ownership in this new venture while

Renault and Nissan would have 25% each. As per the agreement, the location of

the new production plant is Chakan (Maharashtra) in India, this plant would be

used for manufacturing UCL i.e Ultra Low Cost with capacity of 400,000 units

per year. The companies say their entry-level ULC will be priced at $2500,

which will directly compete with the Tata Motors produce Nano. The Renault-

Nissan Alliance, is a 50-50 joint venture company, established in 1999. The

Renault Group, based in France designs, engineers, manufactures and sells

passenger and light commercial vehicles globally. With operations in more than

115 countries in the world, the automaker sells vehicles under three brand

names - Renault, Dacia and Samsung.

issuesin November 2009, Bajaj Auto Limited said the product being developed

would be aligned differently, compared to the initial concept, as the ultra low-

cost project was proving unviable therefore Franco-Japanese auto alliance

Renault-Nissan to decided to end collaboration with Bajaj Auto for sourcing of

ultra-low cost car, as it looks for options in countries such as China and Russia.

They have decided against further collaboration with Bajaj on a four-wheeler

vehicle. Outside India, the Renault-Nissan Alliance is addressing "price-entry"segments in many emerging economies, such as Indonesia, China and Russia.

In China, two vehicles under the Venucia Brand (D40 and D50) have already

been launched by the Dong Feng- Nissan Joint Venture.

In Russia, collaboration between Renault-Nissan and AvtoVAZ is already

making progress on vehicles to be launched under the Datsun Brand.

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As per an agreement reached between Renault-Nissan alliance and Bajaj Auto

in 2009, the Indian automaker was supposed to design, develop and

manufacture the product, which was intended as an ultra low cost car, while the

alliance would sell it under their badging. In 2010, Renault-Nissan announced

the signing of a memorandum of understanding with Bajaj Auto to take forward

their ULC car project.

Future

April 2013

Bajaj Auto said that its talks with Renault-Nissan for a fourwheeler quadricycle

project is on track as it comes closer to launching its RE60 - the first

quadricycle for India -- with the government giving its in-principle nod to this

new category.

The quadricycle, which is a step-up from a traditional autorickshaw but

significantly cheaper than a car because of its weight, power and speed, has

caught the imagination of auto makers like Mahindra & Mahindra, Piaggio and

Eicher who are keen to use it as a passenger vehicle. they are in touch with

Renault-Nissan for the last four-five years and have provided whatever

information companies wanted.

"According to bajaj the Partnership was not about their technology. It was our

technology and we would have tapped into their marketing network in Europe.

Apart from creating an all-new segment for India, Bajaj is also eyeing Europe,

the US and other developed markets where the quadricycle is quite popular as a

recreational buggy, and this is where the alliance with Renault-Nissan would

come in handy.

The RE60 has a kerb weight of 450 kgs, emits 50 gms of carbon dioxide per

km, and delivers high fuel efficiency of over 35-40 kms per litre. The vehicle

will be powered by 216-cc petrol engine delivering 20 horsepower with a

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maximum speed of 70 kms per hour. Scotching rumours, Bajaj made it

abundantly clear that the company is not tempting small car buyers with the

RE60, rather it was offering three-wheeler owners a better alternative.

He also stressed that Indian norms should be in line with European regulations,

with a restriction on weight of the vehicle, maximum speed of not more than 70

kms per hour, and that these vehicles should not be allowed to ply on highways

and expressways.