The allinace between Bajaj and Renault-Nissan will result in an entire “portfolio of products” from cars to multi-purpose, multi-seater vehicles and the official memorandum of understanding between the two will be announced in July.
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Bajaj Auto MD Rajiv Bajaj told the Economic Times of India : “There’s no way one can compete with a single product in any market, be it cell phones or motorcycles or cars. So, we are planning a portfolio of products. There would be different products, not just variants of the same product at different price points.”
The platform for the ultra-low cost (ULC) the two are jointly developing is flexible. “It can be extended in length or height and can spawn more than just a conventional vehicle, like a multi-seater, for example,” Bajaj said.
Price-positioning is not a priority. “Bajaj has always maintained that we are not after the ‘cheapest car in the market’ tag,” Bajaj said. “The ultra-low cost car will be attractively and competitively priced, but it will not be sold on price alone.”
The ETI report said the car’s engine, transmission, branding and selling would all be unique and key selling points would be fuel economy and emissions. Its price would be close to US$2,500, but could go over $3,000.
The paper noted that Bajaj and Renault have already announced an agreement to go ahead with the ULC project following the positive conclusion of the feasibility study.
