The tripartite joint venture among Renault-Nissan-Bajaj is getting hot exercise, according to the information available. The JV has come out with a high efficient and fuel economic engine for the small car, which is likely to hit the market in 2012. The car would cost around Rs2 lakhs and would vie with Tata’s Nano which is currently sold at Rs1.23 lakhs. The small car from this JV is ignited to offer 30 km mileage and would be tuned to emit less carbon at < 100gm of CO2 after a run for a kilometer. Nano has the emission level of 101gm to make it a least polluting car in the country and gives 20km mileage. The Chairman of Bajaj, Rajiv Bajaj made it clear that their car is not the cheapest in price but would offer the very best features for Rs2 lakhs. He reiterated that the target customers would be those who intend to switch to four wheeler from two wheelers. Once the car comes with low emission and low cost, then the city consumers may throng to own this car, he perceived. The company is on the lines of leveraging the cost involved in its two wheeler manufacturing. Bajaj has a slid over Nano, whose price is likely to increase for the next batch of bookings. If the car from this JV hit the roads by 2012, the giants would involve in fierce battle to secure the market share of this entry level car. The average running cost for the customer who go for this small car would be Rs5000 per month. He elicits that a two wheeler owner may spend a minimum of Rs2500-Rs3000 per month for running and maintaining the bike. For the same act with regard to the low end Maruti Alto, the cost involved is around Rs8000- Rs10000. The customers are not for spending such a huge amount but would definitely prefer an economical model involving the maintaining cost of Rs5000. The delay in the launch of this car was due to the designing of the fuel efficient engine. The two wheeler owners prefer to upgrade to a low cost car amidst the increase in the sale of two wheelers- 9.3million two wheelers in 2009-10 (according to SIAM). After the imminent success of Nano, the car makers are vying to enter into this segment, which again provides thumping opportunities. This was corroborated by the Vice-President of General Motors. He opined that this small car segment proves to be more penetrating and the desired customers are two wheeler owners. This made GM and Hyundai to focus more on the small car projects. Hyundai is exploring a small car for $3500 with fine fuel efficiency. If Bajaj is successful with its launch of small car, there will be tough competition from Hyundai (800cc) @Rs2.5-Rs2.8 lakh and re-engineered model from Maruti. Of these, Hyundai will fit the car with the engine resembling the one from the proposed Bajaj small car. In all these small car would be eager to offer a minimum of 20km mileage.