The launch of the ultra low cost car to be manufactured by Bajaj in alliance with Renault and Nissan has been further delayed as the partners are busy with their individual projects  It seems consumers interested to buy the ultra low cost (ULC) car to be rolled out by Bajaj Auto in alliance with Renault and Nissan will have to wait a little longer as its launch has been rescheduled to 2012. It must be noted that initially the car was slated to be launched this year, but due to difference in opinion between partners over design and pricing, the launch was deferred to 2011. Now, rescheduling of the project to 2012 has raised serious doubts on whether the car can be billed as the world’s cheapest car, overtaking Tata Nano. The car was to bear the price tag of Rs 1.1 lakh as against Tata Nano, which comes at price points ranging between Rs 1.23 and Rs 1.72 lakh.
According to Himanshu Mittal, sales manager of Shiva Automobiles, a Bajaj auto dealer in Ludhiana, “With prices of raw materials such as steel, aluminium, rubber etc soaring high, delay in production of the car will only lead to increase in operational cost, which will make it very difficult for the partners to keep the Rs 1.1-lakh price tag.”
Reasons for delay
The engagement of partners in their individual projects is possibly a major reason for the delay in launching the car. While Bajaj Auto is focussing on the two-wheeler segment with a slew of new launches, Renault and Nissan are busy with their forthcoming plant in Chennai. According to Nitin Madan, managing director of Engpar Sales Pvt Ltd, a mid-sized manufacturer of automotive parts in New Delhi, “Hero Honda and TVS has been posing stiff competition to Bajaj in the two-wheeler segment. This has compelled the company to focus on the two-wheeler segment where it has a better understanding of the market dynamics.”
At the initial stages it was decided that while Bajaj will look after engineering and manufacturing of the car, Renault-Nissan will be responsible for its marketing and sales.
Arup Choudhury |
