Bajaj conside Renault Joint Venture in 2 months to make $3,000 cars

MUMBAI (Reuters) - A feasibility study by Bajaj Auto Ltd, India’s No. 2 motorcycle maker, and France’s Renault on making a small car in India should be ready within two months, a senior Bajaj official said on Friday.

Renault and Bajaj said in July they were in initial talks on making “very competitive” vehicles in India.

“Right now, it looks like the study will be done in six to eight weeks,” Executive Director Sanjiv Bajaj told Reuters by telephone.

“Depending on the outcome, we will then make a decision on how to proceed,” he said, without giving further details.

Renault, which also has a joint venture with Mahindra & Mahindra to make the no-frills Logan sedan in India, has said it was looking at the viability of a $3,000 car to compete with a cheaper car that Tata Motors is making.

Renault, Nissan Motor and Mahindra also have an alliance to make 400,000 vehicles in a plant in southern India from the second half of 2009.

It has been reported that Bajaj, which also makes motorised three-wheelers and is developing its first four-wheel vehicle, a cargo carrier, would make the engine for the proposed small car.

Bajaj has been reported as saying the engine may be displayed at India’s Auto Expo in January, when the Tata car is also expected to be unveiled ahead of its launch later in the year.

Earlier on Friday, Bajaj posted a better-than-expected 6 percent rise in net profit to 3.36 billion rupees ($85 million) in the fiscal second quarter to Sept. 30.

Source : Reuters

Share This