Renault-Nissan announced their plans to develop an ultra low cost car in partnership with Bajaj Auto. The duo made this announcement at the Geneva Motor Show, and further added that there is a lot of analyzing yet to be done of the Indian automaker.
The Indian automaker was appointed in 2009 to design and develop an ultra low cost car, that the duo would sell under their badging. In response, Bajaj introduced the RE60 at the 2012 Auto Expo in Delhi; an ultra light-weight, low cost, small capacity four-wheeler that would go out to replace the three-wheeler ricks in India. Powered by a small capacity 200 cc engine, the RE60 was introduced for the commercial sector only.
Renault-Nissan is currently analyzing the Bajaj RE60 and says its very cautious as it’s a new market for the alliance. Bajaj had first unveiled the ultra low cost car in January 2008 with an expected price tag of $3000. However, the differences crept in with Bajaj wanting to reduce the overall cost of ownership.
The agreement was made between Bajaj and Renault-Nissan to go ahead with the development of the ultra low cost project in 2010. However, the duo is still analyzing the RE60 and has not given any word if they will go ahead with it for the Indian and international markets. Renault-Nissan said that the Indian market is new for them, and the previous joint venture of Renault and Mahindra did not flourish, so they are taking baby steps now.