Sensing the risks involved in the busy car market, Bajaj has thrown open its option to enter the car market under the platform of Renault. The chairman Rahul Bajaj categorically claimed that his company is not desirous of entering into car market which consists of 14 companies offering 25-30 models. The minimum required sale for establishing in the car market, he said, is 2 lakh units per year. Meeting the government norms, Bajaj is seeking its entry into 4 wheeler market by 2012. Initially there will be a Light Commerical vehicle.
The company is agreeable to the compact car manufacturing provided Nissan and Renault share the common platform, he said. Under the pact, Bajaj is given the charge of designing, developing and manufacturing the small car. Renault-Nissan will take car of sale and distribution through dealerships. In the event of this car coming onto the roads, then it will be the cheapest on running costs.
The pact got cleared after a hiccup for two years over the technical sharing among the partners. Hence the delivery of car is delayed by a year, due to the tussle between Renault and Bajaj over pricing and fuel efficiency. Bajaj has evolved a new ploy rather avoiding its brand name for certain two wheelers(Pulsar, Boxer and Discover) and three wheelers. Mr.Rajiv Bajaj had earlier indicated such a move of diluting the brand- quite common in consumer goods like bulbs to insurance. But the chairman Mr.Rahul Bajaj maintained that the present brand value will continue for automobiles.