Renault-Bajaj JV likely for small car in India

July 14, 2007

In its bid to build a small car, the Nissan-Renault combine is likely to join hands with Indian auto major Bajaj Auto.

Reports say that Nissan-Renault's Chief Executive Officer Carlos Ghosns has lined up a $3,000 project to build a small car using Indian expertise. This is where the new partnership for Renault in India with Bajaj Auto is being anticipated. Many feel that the small car partnership could be part of a larger alliance between Renault and Bajaj Auto covering commercial vehicles as well.

The Bajaj Auto top brass is expected to meet Renault officials in Paris shortly to discuss a possible joint venture plan. It may be noted that Renault currently has a partnership in India with Mahindra & Mahindra. The French company has in fact two separate joint ventures with the Indian automobile major. The two partners, along with Renault's sister company Nissan Motor, are also putting up a greenfield plant in Chennai which will be used by all three.

Meanwhile, Mahindra & Mahindra has emphatically denied there were any talks with its French partner on the small car project. Mahindra & Mahindra is not interested in the US $3000 car project because its long-term strategy is to be a global player in the sports utility vehicle market.