Bajaj Auto and Nissan-Renault likely to finalize JV talks soon

Vehicle manufacturers Bajaj Auto of India and Renault-Nissan are likely to take a final decision on jointly developing a low-cost car by the end of January 2008, reported The Economic Times.

The report said that high-level discussions on badging, distribution, sourcing to investments, plant sites and engineering decisions are currently going on between the two companies.

Bajaj Auto is expected to lead the alliance for the $3,000 small car project. According to sources, Nissan-Renault chief Carlos Ghosn wants Bajaj to handle the engineering and distribution of the car.

During his visit to Bajaj’s plant in Pune earlier in 2007, Mr Ghosn said: “We are partnering with Bajaj on the ultra low-cost car because it is a well-run company which is high on quality, productivity and profitability. It’s motivated and it is easier for a three-wheeler maker to upgrade to an ultra low-cost car than a four-wheeler maker to downgrade.”