Bajaj Auto has said its project to develop four wheelers for Nissan Motor and alliance partner Renault was still on track after media reports, citing a top executive, said it had been called off.
The Wall Street Journal, citing Bajaj managing director Rajiv Bajaj, had reported earlier the two-wheeler specialist had shelved the project to develop a low-cost minicar in India for Renault-Nissan, saying it was commercially unviable.
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“We would like to clarify the Bajaj-Renault-Nissan project is very much on,” S Ravi Kumar, Bajaj Auto’s senior vice-president for business development, said in an e-mailed statement to Reuters.
“The new four-wheeler platform, which will have commercial and passenger applications, will be showcased to Renault-Nissan in January 2012.”
“Bajaj Auto will remain in the commercial space of the business while Renault-Nissan, if they decide to go ahead with the project, will be responsible for the personal transportation application,” Kumar added.
The statement added Bajaj had expressed concern on the viability of the project to Renault and Nissan head Carlos Ghosn in November 2009, but the venture partners had then agreed to rework the project toward a four-wheeler on a new platform.
Nissan spokesman Simon Sproule told Reuters the partners faced milestones in making decisions for the project in the next few weeks but the company had no immediate announcement to make.
The Renault-Nissan alliance said in a statement sent to Reuters that it would not comment on discussions with Bajaj.
It added it was pursuing talks with other companies and independently developing cars for the Indian market, including the entry-level segment, and was on track to launch “a spectrum” of vehicles there.
