Renault Nissan is all set to start a new plant in Chennai in 2010. Â It has decided to bring a car code named ULC which will be an ultra low cost car and will be made in collaboration with Bajaj Auto Ltd. This car will be launched by 2012.The car will be mainly designed , engineered and manufacturedÂ by Bajaj Auto Ltd, supported by the Renault Nissan alliance while the marketing and sales within and outside Â India will be handled by Renault Nissan with support from Bajaj Auto Ltd.
With Tata Nano already in the market, there is a danger that the need for a small car may saturate by 2012 and bleaken their prospects. To which the Chief Executive of Renault Nissan co. said, â€œSaturation of cars in India is not a fact. My main concern is not demand but whether we have enough capacity and products to service this market. Beginning March next year, there will be a full line up of products from Renault Nissan.â€
Renault had launched the Logan, in collaboration with Mahindra and Mahindra but it was not much of a success. But Carlos Ghosn hopes, that by taking corrective measures, it can be relocated.
On being questioned about the risk involved in tying up with a company, which has only made two wheelers and three wheelers, to make four wheelers, Carlos Ghosn said that Bajaj Auto India had the skills and the mindsetÂ which their companyÂ lacked, while Renault Nissan had the knowhow and experience in making cars. Thus a combination of both will help them deliver a low priced product with a low running cost.