One more one-lakh car is headed in your direction, and it is official now. Bajaj Auto Ltd and Renault-Nissan, the world’s fourth largest car maker, will build a $2,500 (Rs 1 lakh) car in India, which will challenge Tata Motors' Nano as the country's cheapest car.Bajaj Auto had unveiled the prototype of a car two days before the Delhi Auto Expo in January 2008, where Tata unveiled its Nano.
Rajiv Bajaj, managing director of Bajaj Auto had then said that the car would cost much more than a lakh, and would have a mileage of 34 kilometres to the litre.
The industry is already abuzz with comparisons between the two cars. While the Nano has a engine under the back seat, the ULC will have an engine in front, like other traditional cars.The final version of Bajaj’s one-lakh car will be ready shortly with the company firming up the joint venture, which will manufacture and market the car. The car would be manufactured in a brand new plant in Chakan, near Bajaj’s existing two-wheeler plant, according to a release. The plant will have an initial capacity of 4 lakh vehicles per year. The Nano plant in Singur, West Bengal, will have a capacity of 2.5 lakh units per year.Though the consumer is going to get more choice in low-cost cars, rising petrol and diesel prices may prompt them to shelve their plans for upgradation. "I won’t be going for a car because fuel prices are in the range of Rs 50-60 per litre. I am using a motorcycle, which is giving me a mileage of 60-65 kilometres per litre. Why should I upgrade?" said Rajesh Ittissery, working with a software firm in Navi Mumbai.
