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    Thread: Renault-Nissan vows to build world's cheapest car? Nano ?

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      Renault-Nissan vows to build world's cheapest car? Nano ?

      Carlos Ghosn, the lovable star of his own Japanese manga comic and the CEO of Renault-Nissan, is claiming that his company will produce a car that costs less than the $2,500 Tata Nano, making the as-yet-to-be-named car the cheapest in India, and therefore the least expensive in the world. The car will be built by Bajaj Auto, :shock: an Indian scooter and rickshaw company. Not to be left out of the party, both Toyota and GM have expressed interest in selling "ultralow-cost small cars" on the Subcontinent.

      However, these cheap, small cars just don't sell themselves. So far, Tata has managed to move just 10,500 Nanos since July. For their part, Bajaj and Renault-Nissan were hoping to get their ultralow-coster on the road by 2011, but there have been delays. First announced last year, Ghosn said that the delays should come as no surprise since neither Bajaj or Renault-Nissan has ever made such a vehicle. He did note, however, that such a car is "critical" to Renault-Nissan's presence in India.

      "I don't want Renault and Nissan to be makers of very pretty cars that people dream about but cannot afford." said Ghosn. He also said that by the time Renault and Nissan's small car debuted it might no longer be the very cheapest. There are also plans afoot to export the new vehicle out of India, just like Tata is planning to do with the Nano, though that car would most likely be slightly reworked and therefor more expensive. Tip of the pith helmet to Neil!
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      One of my crazier relatives has had this idea for a long time (10 years atleast, I reckon). He wants to get a Bajaj Auto, strip it out, reverse the contols, add a few more seats and cover the top with rexine. Lo, a 3 wheeled family carrier for about 50K.

      Fortunately or unfortunately, he didnt have the money, nor did his folks encourage him.

      Let us see how Bajaj themselves go about this.

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      what will be that car look like? Bajaj RE rikshaw with a face lift ?
      Or with a DTSi Engined 'Nulsar' ..
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      It will be tough for Renault Nissan to produce a cheaper car than Nano. Tata is very good with low price item sourcing from its vendors.

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      Why not, if the Bajaj Group is there for local support and resources?
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      Sure, but Nissan wouldn't want to put its name on such a car if it proves to be unreliable.
      With a Bajaj name people can live with it if it breaks down or catches fire.
      People can live with it if it breaks down or catches fire even if it has a Nissan-Renault name, but would Nissan-Renault want to put their name on it?

      If Nissan-Renault wants to put their name on the car it better be better built for their own sake. If its better built can they price it lower than Tata?

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      That's a truth. I agree. Lets wait for 2011
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      Update -

      With Tata unable to produce enough Nanos to keep up with demand, more automakers are gunning for its entry-level segment. Renault-Nissan is teaming up with its Indian-market partner Bajaj to produce a car that’s even cheaper to produce than the Nano. “I can tell you the cost of this car would be lower than any car today made in India,” Renault-Nissan CEO Carlos Ghosn tells Gasgoo, adding that a lower production cost wouldn’t guarantee that the new car would be priced lower than Nano. The Renault ULC, as the low-cost car is being called during development, will be available in India in 2012, by which time GM and Toyota could have competing models on the market. Ford’s recently-announced Indian market low-cost car, based on the discontinued previous-generation European Fiesta, will be positioned above the Nano. And that strategy also appeals to Honda. The Motor Company tells the WSJ that rather than competing directly with the lowest-cost segment, a sub-Fit (Jazz, as it’s known globally) hatchback will be introduced around 2012 to compete with Ford’s model. The Jazz/Fit currently sells for about $15,000 in India, leaving a huge window between there and the Nano’s approximately $3,000 price price tag.


      For automakers scrambling to break into India’s auto market there seems to be two separate strategies: the major global players are gunning for the lowest-cost segment, while the second-tier players are shooting just above it. The exception to this rule is Volkswagen, which was the first to the Chinese market and has become the number one player there. And unless a rumored tie-up between VW and Suzuki takes place (Maruti Suzuki is by far the biggest automaker in India), it will have almost no presence in India. Meanwhile, GM’s presence seems set to be eclipsed by its Chinese partner, SAIC. Hindu Businessline reports that SAIC will likely pick up 50 percent of GM’s India operations in hopes of developing a greater export market for Chinese-produced vehicles, and lowering the cost of GM’s Indian-market offerings. The light truck and low-cost car segments are seen as Chinese firms’ greatest strengths vis-a-vis its Indian competitors, but with the globals flooding in to India in hopes of gaining a foothold in one of the last huge growth-potential markets, India’s car wars won’t be a gimme for anyone.
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