Bajaj to show off car at 2008 Auto Expo

Talk of a Bajaj car has been around for a while. Now, the company has come out with a plan to showcase a concept car for the January 2008 Auto Expo. Managing Director Rajiv Bajaj has said that the company aims at bringing in a concept passenger vehicle by January 2008. And if the customers like it, Bajaj will opt for commercial production in three years. Better still, the first car from India’s trusted two wheeler maker will be priced between Rs 2 lakh and Rs 5 lakh.

The company has brushed off descriptions of the vehicle as a ‘cheap car’, saying that the new offering would be a four-wheel passenger vehicle. That has got everyone a little confused though. Okay, it is a concept vehicle, might go into production, and it will not be a cheap ? So it is a not-cheap, small but not too small car, possibly a hatch or even a competitor for the Indigo or Logan - so what's the big deal in coming out and saying it clearly? Probably, its just the reporters who got it all wrong - or maybe they all read a confusing press release.

Meanwhile, the company has also said that it was working on the commercial launch of a four-wheel goods carrier by 2009. The engine, transmission and platform that the company will build would be the basis for its passenger car. According to Bajaj, the reason why the company was opting for a goods carrier is that there is no competition on that front. Bajaj is learnt to be setting aside an amount of Rs 750 crore for a four-wheeler production plant, which will have an annual production figures of 40,000 to 50,000 vehicles.

The company will not be alone in the small car mart, as many a automaker has lined up many a model in the the 1.2 million passenger car market. According to statistics, small cars account for 60 per cent of domestic sales. While Tata Motors is set to unveil its model at the next Auto Expo, the Renault-Nissan combo is mulling over a sub-$3,000 passenger car. Adding themselves to the list are Honda, Toyota and General Motors who are busy readying their Rs 5 lakh cars.

Does the four wheel vehicles foray mean that Bajaj is moving away from its bread and butter two-wheelers? Not really. The company brass has made it clear that Bajaj knows that the two-wheeler market will continue to grow for 20-25 years and so there was no question of shifting focus from two-wheelers.