Ghosn teams up with Bajaj for small car

PUNE: The passion of Rajiv Bajaj, MD of Bajaj Auto, for total productivity management has a new admirer — Carlos Ghosn, CEO of Renault and Nissan. Ghosn, whom Bajaj describes as the “rockstar of the global automotive industry”, was on a whirlwind visit to the Bajaj Auto’s 198-acre two-wheeler manufacturing facility at Chakan, near Pune, on Monday afternoon.

The visit was to announce the collaboration of both Renault and Nissan with BAL for making and selling an ultra low cost car (ULC) priced at around $2,500.

A tough call considering that the latest Bajaj Auto three-wheeler passenger vehicle (RE DD-Fi) is itself priced at $2,500. But not an impossible one, feel both Bajaj and Ghosn. “If Tatas can do it, there is no reason Bajaj cannot with the help of Renault and Nissan,” said Ghosn. He said that Bajaj would lead the tripartite tie-up, while the two global auto makers support the venture in design, engineering and even equity participation in the project if needed.

The idea is to build a car of robust quality that meets the basic requirement of the customers in India initially and then see if it can be exported to other markets, says Ghosn.

If the answer to that is an ‘yes’, which the two companies would know in a few months when the feasibility study is completed, then the ULC car is expected to be launched by end 2011. Whether the new car will have an independent badging or joint badging is yet to be decided.