Bajaj Auto Targets Rs 1.1 Lakh Car

Bajaj Auto has said it will produce a car that will cost $2,500 (about Rs 1.1 lakh) in collaboration with the Renault-Nissan alliance. Bajaj Auto had entered into a partnership with Renault and Nissan to develop an ultra low cost car (ULC) in 2008, but the project got delayed due to differences between the partners over design and pricing. Last year, the partners agreed to take forward the project by finalising respective responsibilities, with the Indian firm responsible for the design, development and manufacturing. Renault-Nissan alliance will take charge of marketing and sales of the ULC under their badge. While Renault wanted the car to have aggressive pricing, Bajaj was looking to make a car high on mileage and low on maintenance. Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on Tata Nano. The ULC will be smaller than Maruti Alto. Hopefully the Bajaj car won’t be in love with flames.