Team-BHP - Pics: Bajaj's Small Car

Going by the news, the car is on schedule but Bajaj will only make the car and not market or sell it. The latter job will be taken up by Renault or Nissan. It was kind of expected as a new venture like this will require millions in terms of investment.

There is a ticker on www.economictimes.com which claims that Bajaj Auto scraps plans for low-cost car venture!
Interesting!! where does Nissan Renault go from here for their low-cost car? they have a tie up with Ashok Leyland which is still on??

Avenger

Quote:

Originally Posted by Avenger (Post 1968932)

There is a ticker on www.economictimes.com which claims that Bajaj Auto scraps plans for low-cost car venture!
Avenger

Couldn't locate the news in the ET site. Can you paste the news item?

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Originally Posted by pacman2881 (Post 1968778)

There seems to be a change of plan with the JV being scrapped-

I had posted in the Nano thread that it was very cheap of Bajaj to resort to this gimmick just as a good project was being launched.

This is what happens to "meetoo" projects.

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Originally Posted by designersf (Post 1968909)

The project itself will still continue; but Renault and Nissan have even hiked the prices from 2,500 USD to 3000 USD. That will be a minimum of 1,35,000/- INR (depending on exchange rate).

From the link:-

Quote:

There is no need for a manufacturing or a marketing JV, because our responsibilities are distinct,” Managing Director Rajiv Bajaj said in an interview yesterday in Pune, southeast of Mumbai, without elaboration. “We will just be an original equipment maker

In other words, Bajaj will be a contract manufacturer. with design responsibilities too.

I think Bajaj never fully understood the challenge of creating a Nano rival and Renault as a partner was looking for more of a free ride than any meaningful contribution. The kind of margings Bajaj Auto have made over the quarter of a century on something like the RE Auto, they will struggle to accept the minimal profits in a car like this.

Perhaps the prepared platform can be used for other products.

Herse a link to the report on ET regarding Bajaj's withdrawal

Stocks to watch: Fortis Healthcare, GTL Infra, M&M, Eicher Motors, Bajaj Auto-Stocks in News-Stocks-Markets-The Economic Times

At first I too thought that it was immature on their part what they did before Nano's launch.

But that is the desi entrepreneurial spirit we must encourage, that slightly childish act bought them the much needed attention and investors in terms of Nissan/Renault.

It would be awesome for our desi company to learn the trick of making cars on the Renault/Nissan's money and Franco Japanese experience in automobile development/manufacturing.

If Rajiv Bajaj manages to do that and in the end go alone and sell car under their brand and dealerships, then he would become one of the greatest entrepreneurial mavericks of our time.

The problems stems from Renault-Nissan themselves.They started off with the small car project with Bajaj.Then they announced they themselves will be building a small car for global markets.After that they got together with Ashok-leyland to build another small car!In between this they had created 2-3 more JVs for commercial vehicles,engines and with Mahindra for the Logan(whose result we all know now).

Their plan of cracking the indian market is by creating as many oppurtunities possible hping that one of them will click.Also they had problems with Bajaj regarding design and specifications of the small car from the start.So its not surprsing they have shelved it.

@anmol:If that happens then it will be great,although its unlikely.Rajiv Bajaj is someone who believes in sticking to its core competency that is bikes.Remember they shut down their scooter making division sometime back.

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Originally Posted by avishar (Post 1970036)

+100000, I have been saying this for a long time. They have been unfaithful partner and that is what they deserve in return: unfaithful partners.

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Originally Posted by avishar (Post 1970036)

@anmol:If that happens then it will be great,although its unlikely.Rajiv Bajaj is someone who believes in sticking to its core competency that is bikes.Remember they shut down their scooter making division sometime back.

Then why did the same Rajiv Bajaj undertook the challenge to make a four-wheeler ?

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Originally Posted by avishar (Post 1970036)

Bajaj should graduate into four wheelers. That's the next step for them. Technology wise it should not be a big deal for them when it comes to small cars. There is nothing like core competency for a company. There will be a day when car sales outnumber two-wheeler sales in india(although very far) and bajaj should be prepared for that. Tata and mahindra would be role models for bajaj.

Bajaj cars (if they see the light of day) will carry the stigma of their autorickshaws, at least initially. Even TATAs were derided as truck makers initially. I distinctly remember the verdict for the TATA Safari TD in IAJ / AI - "A car attempt by a truck maker"!

Heck, if they really had a car then may be they should form a JV with Mahindra ;).

But I don't think Bajaj was really serious about this car. I was reading that all along Bajaj was only interested in becoming an OEM a la Mahindra Logan.

Guess the french don't fall for the same trick twice.

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Originally Posted by Gansan (Post 1970111)

I would not say that. It won't be fair to say so irrespective of the company you are talking about. Remember every big comapny starts with a humble beginging.

Why would bajaj cars have the stigma of autorickshaws?Thats not the only thing they make.They also have a brilliant line of motorcycles which have been developed in-house with the help of a strong R&D team.That is surely going to rub off on the car and the buying public would be aware of that.

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Originally Posted by avishar (Post 1972955)

I don't think so, any more than the Jeep reputation of Mahindras rubbing off on their two wheelers!:)