Business - India;Renault to design Nano's Rival

Pankaj Doval

NEW DELHI: French car major Renault is going to style the rival of Tata Nano. Along with Japanese group company Nissan and India’s Bajaj Auto,
Renault is developing a rival to the Tata Nano budget car under the code-name ‘ultra low cost’ (ULC) and the car is scheduled to roll out by early 2011 from Chakan in Maharashtra.

Sylvain Bilaine, MD, Renault in India, said, “The design suggested by Renault was chosen. We have frozen the styling of the car and have decided its final shape,” Bilaine said.

“Renault’s team will now continue the styling till production,” he said and added that the project was moving ahead as planned despite the current economic downturn and liquiduty crunch. “It is very much on track and there is no change in the plans so far,” he said.


The three-company JV aims at manufacturing its budget car at $2500, at which it would be the closest rival to the Nano. Bilaine admitted that the changed economic scenario has made it “challenging” for the company to hold on to its targeted price-line. “But we are working on it... the price will be very reasonable,” he said.

Company sources said that while Renault’s global design centres, including the new one in Mumbai, have contributed for the current design, the rest of the work would be carried on by the Indian centre.

Industry analysts said the Bajaj-Renault-Nissan combine, while working aggressively on the project, is eagerly awaiting the market response to the Tata Nano. A cold response to the Nano would, in all probability, make the companies take a re-look at the project and make suitable changes.

Bajaj MD Rajiv Bajaj has already said that apart from low entry price, their car would offer the highest fuel efficiency in the market. While Bajaj holds the majority 50% stake in the project, Renault and Nissan own 25% each. The companies are looking at initial annual production capacity of 4 lakh units.

Bilaine said while India would be the initial focus market for the budget car, the companies would also look at other emerging markets like Africa, parts of South East Asia among other regions.