Bajaj has supplied the media with a press release where they have very strongly denied any news reporting the company scrapping its low-cose car venture with Renault. According to the company -today, sections of media have reported “Bajaj Auto has scrapped Renault India Low-Cost Car Joint Venture for Supply Agreement”. Bajaj Auto’s response to the report is – “This report is untrue. The partnership is intact, and the project is on schedule.”
In a press release signed by Mr. S Ravikumar, Vice President Business Development – Bajaj Auto Ltd, the company has said.
“All that we have acknowledged, which in itself is not new, is that as per the understanding reached between Mr. Carlos Ghosn, President, Renault-Nissan Alliance and Mr. Rajiv Bajaj, Managing Director, Bajaj Auto in November 2009, Bajaj Auto is responsible for development/manufacture while Renault-Nissan are responsible for marketing/sales.
As such we can fulfill our mutual objective through a simple Original Equipment Manufacturer (OEM) arrangement, and without the need to necessarily create a new corporate entity in the form of a joint venture (JV).
Hence in our view this status is neither new, nor any different from that of November 2009.”
Sounds like a plan to us – Bajaj working as an OEM for Renault, with the latter marketing and selling the new car. Much has happened after the announcement of this low-cost vehicle that is widely perceived as a genuine Nano beater. We’d love to see the story unfold.