Bajaj Auto’s ultra low-cost car project may have a bumpy ride ahead, with partner Renault India still to take a final call on branding and marketing the vehicle.
“We have not seen the car being developed by Bajaj. We will take a decision on whether to partner on branding and marketing the vehicle only when we see the final product. The product being developed by Bajaj has to be a car for us to go ahead with the agreement,” said Jerome Stoll, executive vice-president (sales & marketing) at Renault.
According to a 2008 agreement, Renault and Nissan will brand, sell and market the Bajaj car. However, launch of the vehicle has been postponed twice in the last three years. The project has faced several delays on branding, pricing, distribution and marketing.
Bajaj Auto MD Rajiv Bajaj declined to comment on Stoll’s statement. In an emailed response, Bajaj said, “I have no comments at this stage.”
Renault’s take on the ultra low-cost car project comes at a time when the French automaker is preparing to independently develop a small car for the Indian market. Renault has a technical centre in Chennai manned by 1,500 people and has set up an engineering & design studio in Mumbai.
“The ultimate directive for the engineering & design studio is to understand consumer preferences and come up with a car for the Indian market,” said a senior executive at Renault’s local unit. The product will then be customised for markets such as Brazil and Russia.
