Bajaj Auto has announced that it will produce a car that will cost $2,500 i. e. about Rs 1.1 Lakh. It is going to be associated with Renault-Nissan for this Rs. 1.1Lakh car project. However, the Tata's are finding it difficult to produce their "People's Car", Tata Nano at Rs. 1 lakh.
The rising input costs have hit them hard and it is not going easy for them to maintain the track. The industry id eagerly waiting to see, how the auto giant of India can produce a car with the same cost.
In the year 2008, Bajaj Auto had entered into a partnership with Renault and Nissan. The basic purpose of this partnership was to produce an ultra low cost car (ULC) and introduce it to the Indian market. The project was delayed due to some reason but now both the companies have agreed to bring alow cost car for the Indian consumers.
Bajaj is going to be responsible for the design, development and manufacturing of the car while the marketing and sales part will be taken care of Renault-Nissan alliance.
