Bajaj Renault Ultra Low Cost Project Not Formal Yet- Renault May Opt Out


Bajaj Auto India limited and Renault have informally agreed upon the development of a small Ultra Low Cost four wheeler (small car). Bajaj was supposed to work as an OEM and supply the ULC cars to Renault who will market and maintain the sales and service network in India. Amid the long development time and strained relationship of Renault and Bajaj, the project might not come as it was planned. Since Bajaj has been developing the ULC for Renault and has announced that it will be launching its own commercial vehicles in India using the ULC platform, Renault might not have received this announcement pleasantly.



Since there is no formal Joint-Venture on this project and Renault is yet to approve this vehicle which is supposed to be done by end of year 2011, there is no surety of Renault going forward with the project. On the event of launch of Renault Fluence in Delhi on 23 May 2011, the MD of Renault India Marc Nassif indicated that Renault will accept the project if the product meets the expectations of Renault. Which is another indication that there are fair chances of the project being abandoned by Renault. In case the project is not accepted by Renault, Bajaj may take it forward to develop it further and launch it in its own brand name in the coming years.

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