Renault-Nissan head Carlos Ghosn said last week that Nissan was committed to developing a low-cost, small car with Bajaj Auto by 2011, in spite of differences between the companies. Speaking on the sidelines of the India Economic Summit, Ghosn said that the affordability of the car was important not only for India but for emerging markets all over the world. He could not, however, say with certainty whether the $2,500 price tag would be strictly adhered to.
Ghosn was all praise for India’s capabilities in frugal engineering, and said that this was significant in the context of the global downturn and the shift towards lower-priced cars. He said he was optimistic about the growth of the auto market in India.
Renault-Nissan’s small-car project with Bajaj Auto had run into difficulties a few months back with major differences emerging between the companies during the product planning stage. While Bajaj Auto was focused on the mileage factor, Nissan was more particular about sticking to the low price. With Ghosn reiterating Nissan’s commitment to the project, it seems that the much hyped small-car will see the light of day, after all.
This small car from Renault-Nissan and Bajaj Auto joint venture will not only give tough competition to the Tata Nano but also to the Maruti Alto and Maruti 800.
I think the TATAs are going to be unfazed as far as sales are concerned.. the Nano has generated enough hype and publicity for any other small car to come close to it. Maruti might have a issue with this launch though. But Alto has captured a great market in small cars. The TATAs can compensate the supposed drop in Nano sales with the Manza Sales.. Manza is doing great !! Check out the reviews theyve got on the youtube channel of theirs.. indulgeinmanza.
Raghav,
I guess post-fire incident has resulted in low sales for Nano. It has adversely affected its publicity and hype.