Bajaj-Renault study on small car to be ready by Mar

Bajaj Auto has said the feasibility study on a possible joint venture for its small car project would be completed by early March, even as French carmaker Renault said it was hopeful of joining hands with the Indian auto giant for the venture.

Renault and Bajaj Auto had initiated a joint study on the feasibility of jointly producing a low-cost car in India in July. The findings of the study were earlier expected to be detailed this month.

"Some more critical issues are being sorted out and they (Renault, Nissan) have sought some clarifications. We expect the study to be over by early March," S Ravikumar, Bajaj Auto, vice-president, business development, said.

French automaker Renault and Japan's Nissan are in alliance by way of crossholdings between them. Carlos Ghosn heads both companies. While Renault holds 44.3 per cent in Nissan, the latter owns 15 per cent in Renault.

The country's second largest motorcycle maker Bajaj Auto recently unveiled its 'Lite' concept car, and said it was planning to launch the car in collaboration with Renault and Nissan within four years.

About the venture, Renault India Managing Director Sylvain Bilaine said, "We are very hopeful of doing the small car project along with Bajaj Auto. The study should be over in another two-three weeks."

Carlos Ghosn, president and chief executive officer of Renault and Nissan, has said Renault was looking to develop a $3,000 car in India.

Small car projects are looking increasingly attractive following the overwhelming response to Tata Motors' 100,000 rupee Nano, unveiled last month. Ravikumar said if the plans go through, the joint venture would be a tripartite agreement between Bajaj Auto, Renault and Nissan.

Asked whether Bajaj Auto was also discussing a tie-up regarding light commercial vehicles with the French company, Ravikumar replied in the negative. "LCVs do not feature in the talks."

The company had earlier said the agreement between Bajaj and Renault on the small car could also spill over to the light commercial vehicles space. Bajaj Auto is also studying the possibility of assembling high-powered Kawasaki motorcycles in India, Ravikumar said.

"We are contemplating that (assembling) possibility. We would want to do the business in the best possible way."