Bajaj-Nissan small car at Rs 1.1L

New Delhi: Tata's Nano has to brace for some serious competition with Renault/Nissan chief Carlos Ghosn reaffirming that its ultra-low-cost (ULC) car with Bajaj would have a price target of around $2,500, or roughly Rs 1.1 lakh. 

    Ghosn's ULC project with Bajaj has gone through a lot of troubles, though the companies had late last year announced that it was on track and that the car would be out by 2012. 
    Ghosn's latest announcement, made at the Renault AGM, however, displays the seriousness of the three partners on the project. "In India, Renault and Nissan are developing an ultra low cost vehicle with the Bajaj group, benefiting from its expertise in light vehicles and knowledge of the Indian market. We are aiming for a price of $2,500,'' Ghosn said. 
    When asked if this is the agreed price range, Bajaj Auto MD Rajiv Bajaj replied in the affirmative. 
    The partners, thus, seem to have solved the tricky issue of pricing, which has been widely speculated as the reason for the delay in the project announced in 2008. While Renault wanted a low-cost car, Bajaj was keen on a car that would have high mileage and low maintenance. 
    Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on Tata Nano, which is currently available in a price range of Rs 1.23 lakh-1.72 lakh (ex-showroom Delhi) for three variants. 
    Last year, during his India visit, Ghosn had announced finalisation of the project and said "as per the agreement, the design, engineering, sourcing and manufacturing will be handled by Bajaj Auto, while marketing and selling will be (done) by Renault-Nissan Alliance.'' He, however, had declined to comment on the pricing of the car.