The Ultra Low Cost (ULC) car project involving Bajaj and Renault – Nissan has come to a temporary standstill. The problem this time seems to be issues related with the production and branding of the car. The Bajaj and Renault-Nissan ULC car was originally supposed to hit Indian roads this year, followed by a release in International markets, a year later. But, due to delays in the execution of the project plans, the launch dates of the car kept getting pushed. The car is now scheduled for a launch sometime in 2012.
The delays in the implementation of the project plan seem to be the result of the three companies focusing largely on their individual game plans for the Indian market and thereby leading to a delay in the implementation of the ULC”s project plan.
Bajaj Auto will be handling aspects of the car such as its design, engineering, sourcing and manufacturing while the Renault-Nissan alliance will focus on the marketing and selling of the car.
Rajiv Bajaj, Managing Director, Bajaj Auto Limited -
Bajaj Auto has not finalised any production plans as of now, despite the launch of the car being less than two years away
Kiminobu Tokuyama, Managing Director and CEO, Nissan India -
We are to yet finalise production plans of the Ultra Low Cost car. No decision has been taken yet
With two of the three companies involved in the ULC car project stating that the production plans for the car have yet to be finalised, there seems to be no end to the delays that the project has been plagued with. It now seems as if the JV trio of Bajaj, Renault and Nissan will have another announcement of a delay to their ULC car project. Will this car ever see day light?
The shake-up could lead to good or bad news. The decision is just weeks away
The Indian wing of French carmaker Renault will restructure the JV it signed four years ago with Mahindra. The first and only offering of this partnership, the Renault Logan, which got off to a flying start has simmered down to a level of 500 units a month raising difficult questions. The Logan has received no cosmetic makeovers in its lifetime here in India. It also has not received new engines, transmissions or any mechanical upgrades.
One possible outcome of the restructuring could be a sub-4 metre Logan with a 1.2-liter petrol engine which makes it a small car. Renault could tinker its body, install new grilles and headlamps and sell it with a smaller diesel engine. But that is easier said than done.
Chief operating office Sudhir Rao, Renault India -
We are exploring all options. A final decision on this will be taken in 30 to 45 days
There have been countless theories on what Renault plans to do in India. One story claims they would end the joint venture, while the other claims they would use the Logan’s platform to produce a hatchback and other variants as part of the venture. Guess the end to all this is near its own end.
The tale of Renault’s losing battle in India continues to take new turns and shortcuts to reach a nearest dead-end. First, Mahindra dropped-out of the three-way JV in Chennai. Leave alone Logan’s sub-1000 sales figures, due to the the poor economic state, Renault was left in a bit of a soup, car sales of the brand was affected globally.
Yesterday, Renault’s official has communicated with DNA and confirmed it will defer its investment on the Chennai plant.
Renault country general manager India operations Marc Nassif -
Renault would defer its investment in the assembly line for its cars — till the economic situation improved. Our commitment to invest in the Chennai facility and India remains undiluted.
The Renault-Bajaj ULC has also faced its quota of problems. One party wants the vehicle to compete with the Tata Nano directly, while the other wants it to be positioned elsewhere. Apart from this dilemma, nothing else about the product, its development or progress has made headlines anywhere.
Sources tell us Renault might not extend its relationship with Mahindra beyond the under-performing Logan in Nashik. Mahindra has said slight modifications to the product could enable it to qualify for lower excise duty, but no breakthrough has been reached. With speed breakers popping up everywhere and now even in the JV down south, one cannot but think Renault would pull the plug in India.
Nissan is however confident of its plans and it has assured us about the Micra and a sedan based on it, which will roll out of the Oragadam plant next year. Nissan will also build three other cars in India and import niche models, the first of which is the 370Z, possibly at the Auto Expo.
The deteriorating sales of Logan hasn’t deterred Renault’s aggressive plans of producing cars at its Chennai plant by 2011. According to Mr Marc Nassif, Country General Manager, Renault India, Renault globally has small cars, sedans and sport-utility vehicles, its just that they have to select the right model that’s best for India.
Renault is expected to launch its first compact hatchback next year, followed by a notchback in 2011 (possibly the Sandero and its derivative). Renault has frozen investments in its JV plant with Nissan at Chennai, but it could use that facility.
The Bajaj ULC project was deployed into action by Nissan, Renault and Indian bike and 3-wheeler manufacturer Bajaj last year by displaying a prototype at the Delhi AutoExpo. Ever since the Nano was formally announced on March 23, the Bajaj’s Nano has drawn wide interest of the Indian public.
The Hindu Business Line reports Brazil will be an overseas market where the Bajaj ULC will be sold with either a Renault or Nissan logo. Additionally, the size of this car will be smaller than the cars sold presently in Brazil.
Nissan’s head Carlos Ghosn goes on air often hinting this small car would be priced around $2,500, but Rajiv Bajaj, MD Bajaj Auto, who conveys that only has been the direction of the project and not the intention.
The Bajaj’s small car will instead carve out its identity as the most fuel-efficient car instead of the cheapest, the former the framework of any low-cost motorcycle. As the project matures, the transmission type and related choices will be frozen.
According to the reports emerged before, the transmission would combine the best of an automatic and manual gearbox, and the engine would be a highly efficient 2-cylinder, of petrol and diesel forms.
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The French carmaker, Renault in collaboration with Indian UV maker Mahindra is planning to launch the Sandero hatchback in the Indian market by the year 2010. The plan will help both companies to make use of the full capacity at the Nashik plant, as Logan sales are drowning in India.
Entry posted on February 18, 2009 by
Vibs;
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Renault
The French car manufacturer Renault, who presently sells the Logan with a tie up with Mahindra, has delayed its plans to launch new car models till 2010.The plans have been shelved due the poor economic conditions prevailing in India.
Entry posted on February 2, 2009 by
Vibs;
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Hyundai
Korean carmaker Hyundai has made grand plans to rival Japanese car major Toyota’s iQ. The iQ is among the smallest cars you can buy off a showroom, whose concept was introduced back in 2007 at a glitzy Frankfurt Motor Show in 2007.
Sources in Hyundai have revealed the car will look simpler but will be more functional. This gives rise to doubts whether this is the small car which Hyundai will position under the Santro in India in 2011.
“It would be sort of modular and minimalist in a Citroën 2CV kind of way,” he added. That’s a big indication that yes, something simple is coming from Hyundai’s house and after knowing how Indians have received the i10, this may be another blockbuster. Chances are this car will be produced only in India, just like the i10, but that’s just a calculated guess from us here at Indian Autos Blog.
