Bajaj Auto has reportedly axed their small car project that it was developing for Renault-Nissan, as it was not a commercially viable option. The company’s MD Rajiv Bajaj, was quoted as saying that they are not planning to enter into the low cost passenger car business.
They will instead launch a commercial vehicle with low cost by January. Bajaj Auto had signed a MOU along with Renault-Nissan, last year for developing an ULC car project in India as well as other emerging markets, which was planned to hit markets by next year.
The ULC car was supposed to compete with Tata’s Nano, touted as the cheapest car in the world. The sourcing, manufacturing and designing for this car was to be carried out by Bajaj Auto, while Renault-Nissan would be handling the marketing of the car in overseas and Indian markets, following their agreement.
A spokesperson for Nissan, Simon Sproule, said that the partners would face some milestones when it came to deciding about the project in upcoming weeks, however the company did not have any further details to offer on this situation.
Meanwhile, there were no comments from either Renault or Bajaj Auto.