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Bajaj which is country's second-largest motorcycle manufacturer has announced that their low-cost car project with Nissan and Renault is on track but they may not form joint venture for the manufacture and marketing of their car.
They are of the opinion that, since all the three companies have distinct responsibilities, where Bajaj handles development and manufacturing and Renault and Nissan handle branding, marketing and sales in India as well as abroad, joint venture is unnecessary.
The company has planned to spend around five hundred crores in manufacturing the car as well as setting up factory in Pune so that the vehicle can be sold by 2012. As Bajaj are new in four-wheeler market they plan to use their association with Nissan and Renault to get access to some markets at-least.
Considering rise in incomes, people prefer to buy four-wheelers, hence their new car will cost around five thousand compared to three thousand per month that a two wheeler costs.
