Bajaj to launch its small car at Rs 1.1 lakh

Bajaj Auto, Country's leading two and three wheeler maker is all set to launch a small car in India with a price tag of Rs 1.1 lakh. The car will be launched in partnership with Nissan-Renault alliance. It will compete with India's one of the most popular small car Tata Nano, which is available in the price range of Rs 1.23 to Rs 1.72 (price ex-showroom Delhi).

The project was announced in year 2008, and was scheduled to be completed by this year, but due to the delay in finalising the issues like pricing and designing, project has been postponed to 2012. Where the Bajaj Auto will be responsible for the design, development and manufacturing, the Renault-Nissan alliance will be taking charge of marketing and sales of the car.

In India, Renault and Nissan are developing an ultra low cost vehicle with the Bajaj group, benefiting from its expertise in the light vehicles and the knowledge of the Indian market. Company is aiming for a price of $2,500, said Mr Ghosn, head of Renault Group. While Renault was keen on a low cost car, Bajaj Auto wanted a car that would have high mileage and low maintenance.

It has been claimed that the ULC be smaller than India's best selling car Maruti Alto. The Nissan-Renault alliance has invested heavily at its Chennai plant and operations in India, so that they can provide a strong base to this ultra low cost car.