Bajaj, Renault-Nissan to launch low-cost car in 2012

New Delhi, Nov 10 : The head of Renault-Nissan Tuesday said the venture to manufacture a low-cost car with India's Bajaj Auto was on track and the new car would be out in another three years.

"Yesterday, we signed an agreement that the low cost car will be out in 2012. It is going to be an innovative product, the manufacturing cost will be lower than any other available in the Indian market," said Carlos Ghosn, head of Japan's Nissan Motors and France's Renault SA.

Though he did not elaborate on the car's price, Ghosn said its design, engineering, manufacturing and component sourcing would be done by Bajaj, while Renault-Nissan would oversee marketing and sales.

"Rajiv Bajaj (Bajaj Auto managing director) is not showing any interest in having the Bajaj name on the car. But it is too early to say what the name and branding will be," Ghosn told reporters on the sidelines of the World Economic Forum's India Economic Summit here.

He also said alliances with partners like Hinduja and Mahindra and Mahindra were going well. "I met Prakash Hinduja of Ashok Leyland and everything is well with the LCV (light commercial vehicle) project," Ghosn said.

Regarding sales of Logan, the sedan manufactured in alliance with Mahindra, he said: "Logan sales have been okay. Everywhere else it has done better, but corrective measures will be taken to reposition it in the Indian market."

Ghosn also said the group was not looking at any more alliances or partnerships with Indian or foreign companies.

"If we cannot pull it off with three, we will not be able to pull it off at all," he noted.