Quality hurdle remains for Bajaj-Renault car project | autos | Hindustan Times
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Quality hurdle remains for Bajaj-Renault car project

Renault India on Monday said it would go ahead with the ultra low cost car being developed by Bajaj Auto, only if it meets its quality and safety standards, adding that there was no obligation for it to accept the car unconditionally.

autos Updated: May 23, 2011 21:30 IST
HT Correspondent

Renault India on Monday said it would go ahead with the ultra low cost car being developed by Bajaj Auto, only if it meets its quality and safety standards, adding that there was no obligation for it to accept the car unconditionally.

“What we have is an agreement, not a joint-venture and there is no investment from our end,” said Marc Nassif, managing director, Renault India.

“They (Bajaj) are bringing it up and if it matches our standards we will sell it. If it does not, we will find other solutions. It is just another business opportunity for us.”

On May 13, Bajaj had said it would launch a four-wheeler commercial vehicle in mid-2012 from the ULC platform, which was originally planned to roll out a car with Franco-Japanese alliance Renault-Nissan.

Bajaj had said that the foreign partner would “market it (the product from ULC platform) as a car, but not a low-cost car”, and would be sold at a “mutually agreed price”. The partners had joined hands in 2008 to make a small car with a price tag of $2,500, making it the first competitor to the Nano.

The car was originally scheduled to hit the roads this year but was delayed due to differences between the partners over design, styling and price. While Renault Nissan was rigid on the price tag of $2,500, Bajaj was more concerned with making the car more fuel efficient than bringing its cost down.