The ultra low cost car segment could have been a booming segment; however the market did not respond as companies had hoped for. Renault-Nissan too had showcased their concept of an ultra low cost car in association with Bajaj Auto, but now those plans too have fallen apart. The French manufacturer stated that both the companies had collaborated over a low cost car and not a quadricycle. Bajaj which got closest to a four wheeler with this project came out with the RE60 quadricycle; however, Renault believes that a quadricycle does not fit with the company’s branding.
Renault officially confirmed that both the companies are separately working on their respective low cost cars. The company stated that they had many discussions with Bajaj at that time, but did not want to compromise on certain features, especially safety. As Renault lays special emphasis on safety; both the companies could not find an agreement on several topics. Thus Bajaj and Renault are addressing to their respective small car projects, as per their expertise.
Renault India is all set to launch its low cost car in 2015 that will be manufactured in India and Brazil. The company believes that the new car will help the company double its market share from the current 5 percent. India currently ranks 14th in Renault’s global markets and will be the company’s top 6 market by 2017-18. The country will also be the third largest auto market in the world during the same period. Renault’s small car will most likely be called A-Entry and will be based on the Datsun Redi-Go platform priced under the Rs. 4 lakh mark.
Bajaj Auto’s small car plans will commence with the launch of the RE60 quadricycle that was showcased at the 2014 Auto Expo. The automaker is currently waiting for the quadricycle policy to be approved by the government to launch the RE60 in the country. Renault and Nissan have also stopped cross-badging its products for India. The company is already working on developing the small car with the launch scheduled for 2015. Renault wants to replicate the success of the Duster in India with the upcoming A-Entry small car.
Source – Money Control