BAJAJ FAILS TO GET ITS NAME ON ULTRA-LOW CAR

NEW DELHI: To take on Tata Nano, Renault/NISSAN alliance on Tuesday finalised a deal with Bajaj Auto to produce an ultra-low cost car by 2012, Bajaj small car prototype Tata's small car Nano though denying 'hamara Bajaj' a place in the badging of the car. Renault/Nissan boss Carlos Ghosn, who was in city for the India Economic Summit, said he had worked out the broad contours of a highly fuel-efficient ultra low-cost (ULC) car project with Bajaj MD Rajiv Bajaj that would be out by 2012 (delayed by one year), though refusing to confirm whether the companies had signed a formal joint venture detailing concrete investment and production plans. Asked about the pricing of the car and whether it will be cheaper than the Nano, Ghosn said, "I am sure that the cost of the car will be lower than any car made in India". However, he immediately clarified that production cost of the car could be different from its market price. Surprising, however, was his assertion that Bajaj tag would be absent from the badge of the car even though the Indian carmaker would be the main brain behind its development by using its expertise in frugal engineering and competitive component sourcing. "There would be no Bajaj name on the badge of the car," Ghosn asserted at the press meet where Rajeev Bajaj was not present. It may be noted here that the project — announced in 2008 — has already been delayed, understandably due to differences between the partners on a host of issues, including badging, designing and positioning of the vehicle. Efforts to contact Rajiv Bajaj failed and a very senior Bajaj official — on condition of anonymity — said the Pune-headquartered company was set to "internally discuss" its exclusion from the car's badge as well as other issues involved in the project. For Bajaj, this would be its most ambitious foray so far as it evolves from being a two-and three-wheel maker to a car maker. MAYANKA FULORIA PGDM 3rd