On the sidelines of the Quarter 1 results announcement in Pune today morning, Rajiv Bajaj, MD of Bajaj Auto told reporters that the much-hyped ULC-based four-wheeler will be an exhibit at the Auto Expo in Delhi next January.
Bajaj said the low-cost four-wheeler will be manufactured at the Aurangabad facility, the site once used to roll out geared scooters. The project cost for this 4-wheeler will be approximately Rs 200 crore including the plant. It has to be noted that the project cost is one-tenth what Bajaj would spend on a new vehicle project. The production lines will be designed to produce three-wheelers alongside the four-wheeler. Both these vehicles are likely to be stationed on the ULC platform.
In an interview with NDTV Profit recently, Bajaj said the ULC could be dressed up as a car. But Bajaj has no intentions of producing a car and neither will it get into the goods carrier space with the four-wheeler. It will be designed to move people over short distances. One can imagine a modern Autorickshaw mounted on four wheels at the corners with a design flavor of the Tata Magic Iris to form an imagery.
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Bajaj will bring out a load carrier on the ULC platform next year, Financial Chronicle has reported. Quoting the chairman of Bajaj Auto Limited, it adds Bajaj will sell the load carrier variant while Renault’s car will be off the same platform. IAB is told that Renault hasn’t seen or tested the ULC prototypes that have neared completion. They will give the go-ahead only if they are satisfied with every aspect of the product. Bajaj Auto MD Rajiv Bajaj has repeatedly said that the ULC is a “four wheeler” and not a “car”.
Renault officials could inspect the ULC by year-end and take a call. If they feel the need for further improvements, the launch date could be pushed forward.
Based on the inputs from company officials, our in-house image envisioner Shoeb R Kalania presented a rendering of the Bajaj ULC passenger model. He used design idioms and the thought process behind the Chetak scooter, the Renault Twizy and the Bajaj RE 3-wheeler.
Fast fact – Shoeb’ rendering has raised a few eyebrows in Renault India’ camp.
I have driven the prototype of this vehicle. Ours is a four-wheeler, not a car; it’s too soon for any details on price and volumes.
Rajiv Bajaj, MD of Bajaj Auto tells India Knowledge@Wharton in an interview last week. Rajiv Bajaj has stated before that his company’ ULC project will be a four wheeler which could be used to build commercial vehicles if in case Renault doesn’t find the prototype satisfactory. The engine is expected to deliver 30kmpl.
We scratched our heads when Rajiv Bajaj said “I am repeatedly telling you that we are developing a four-wheeler (ultra low-cost car) and not a car. There is a lot of difference between a four-wheeler and a car. The four-wheeler is under development stage and is likely to hit the market by 2012.”
Shoeb R Kalania wasted no time in getting back to his computer and did up a 4-wheeler bringing together the DNA of an autorickshaw, small city car and a scooter. Bajaj’s first attempt at a mass-market product was the Chetak which moved millions from A-B, so the knowledge gathered from that historic product will be of much use on the 4-wheeler.
We assume plenty of simple components will be carried over from the 3-wheeler division. We expect the ULC to have the dimensions and layout of a Tata Nano with a tiny turning radius.
Bajaj begins production of the ULC next year in Aurangabad where it previously manufactured scooters. The same facility will also roll out three wheelers. Both personal and commercial applications of the platform will be explored.
If Renault walks away (from Bajaj’ ULC), we can still sell our own four-wheeler. We would never develop something for someone else, who has a right to walk away, and we are left holding the baby. How can we possibly justify three years of development and have nothing to show for it? That would be the heights of irresponsibility to our shareholders.
Rajiv Bajaj, Managing Director of Bajaj Auto added after he revealed that Renault will be shown ULC prototypes his company developed later this year.
The Nano sales numbers has sounded a siren and companies have second thoughts of entering this segment. But one man is still going strong – Rajiv Bajaj Managing Director, Bajaj Auto. Instead of going back to the drawing board or backing off a little, he is in fact on full throttle with his low cost car.
His words exude aggression and confidence in his plans. Here is his press statement
Rajiv Bajaj, MD Bajaj Auto -
We are actually emboldened by what we have been seeing so far with the Nano and believe that our own brand strategy is spot-on. I am very upbeat about our car’s prospects despite what the doomsday prophets say
The Bajaj ULC is a part of a joint venture with Renault-Nissan, which is scheduled to be launched in 2012 with a base price of about Rs 1.5 lakh and going upwards. The head honcho also confirmed that the ULC will not sport a Bajaj badge neither will it have a Renault or a Nissan badge.
The ULC will instead have a new brand created for itself and the key USP will be its fuel economy. Bajaj is targeting a mileage of at least 30 km to a liter (Forget the Nano, it is actually more fuel efficient than a some bikes currently running on the streets.)
Tata Motors has faced plenty of speed breakers since the unveiling at the Auto Expo. An unusual booking process, cars catching fire and an unprecedented shift in plant location are a few dampeners in the Nano project.
Is Bajaj Auto being hopelessly optimistic about this project? Or has Rajiv Bajaj sunk his teeth so deep in the project that it is very difficult pull out now? Or are we really missing something? Is there still value at the bottom of the pyramid that he is able to see?
What do you think?
It doesn’t make sense to sell just 20,000 cars, when we will sell 4 million two-wheelers this year. Unless you sell 2 lakh a year of the small car, you don’t break even.
Speaking on the sidelines of the World Economic Forum’s India Economic Summit, Bajaj Auto Chairman, Mr Rahul Bajaj remarked on the low-cost car project his company is part of with Renault-Nissan.
There has been considerable development on the four-wheeler so far. Last month, Renault executives were here, and we have shared all the work with them, be it styling, prototyping and testing. In fact, we have heard from them, after they went back to France, that they are satisfied. So, we have said 2012 (for the launch) and we are on course.
Bajaj Auto Managing Director Rajiv Bajaj talks about the on-going Bajaj ULC project to Business Standard.
