Small car by 2010

INDIAN AUTOMOBILE INDUSTRY IN OVERDRIVE

Nissan, Renault, Bajaj hold talks in Pune.

The ultra-low-cost small car being jointly developed by Bajaj, Renault and Nissan is expected to hit the roads by 2010.

Renault and Nissan CEO Carlos Ghosn, who was on a visit to Bajaj Auto in Pune today, said he hoped that the prototype of the car, which is expected to cost $3,000 (Rs 1.17 lakh) and will compete with Tata Motors' Rs 1 lakh car due next year, would be completed by the end of this year.

Bajaj Auto has set up seven working groups for different aspects of the car.

In a press statement Ghosn said, "It's much easier to upgrade a three-wheeler than downgrade a car. The car will be an upgrade from a conventional three-wheeler."

Rajiv Bajaj, managing director, Bajaj Auto, said, "To Renault and Nissan's world of formidable automotive experience, Bajaj aspires to add value through product innovation and competitive operations. Such an alliance would be promisingly placed to develop a unique platform of 'lite' vehicles for an increasingly vulnerable world."

Later Bajaj told a select group of reporters that "a separate engine and transmission team is not required for this. Our R&D team is fully capable of developing a higher capacity engine". The R&D facility will also develop the car's body, chassis and dynamics.