Renault-Nissan walks out from the ULC car project leaving Bajaj

  • Sep 29, 2012
The auto alliance between the Franco-Japanese car makers namely, Renault – Nissan have come to a decision to end up the collaboration with Bajaj Auto. They had collaborated with Bajaj to outsource the ultra low cost (ULC) cars but now they will be looking for options in China and Russia.

A spokesperson from Nissan Motors has said, “We have decided against further collaboration with Bajaj on a four wheeler vehicle. Outside India, the Renault – Nissan alliance is addressing ‘price entry’ segments in many emerging economies such as Indonesia, China and Russia.”

Bajaj RE60

Bajaj RE60

The company said that in China, two vehicles have already been launched by the Dong Feng – Nissan joint venture, under the Venucia brand. The cars are known as D40 and D50. Meanwhile in Russia, the collaboration between Renault – Nissan and Auto VAZ is making progress already on vehicles that are to be launched under the Datsun brand, the company added.

The spokesperson further said, “We are not going to provide any more product details at this time, but we look forward to disclosing more information as we get closer to their respective production dates.” On the other hand, when Rajiv Bajaj, the Managing Director of Bajaj Auto was contacted on this issue, he declined to make any comments and also stated that he has ‘not heard from them’.

In 2009, an agreement had reached between Renault-Nissan alliance and Bajaj Auto. As per which, the Indian automaker was supposed to design develop and manufacture the product which was intended to be an ultra low cost car, while the alliance would sell it under their own badging. In 2010, Renault-Nissan announced the signing of the memorandum of understanding with Bajaj Auto to carry forth their project.

Since then, Bajaj Auto has developed the RE6o, a mini four wheeler meant for urban transportation. But uncertainty prevailed that whether Renault-Nissan would source the product or not. The launch of ULC was delayed because Renault-Nissan suggested pricing the car at USD 2,500, but Bajaj insisted on lowering the price.

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