‘Not interested in control of small-car JV with Bajaj’

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Geneva, Mar 4: Japanese automaker Nissan Motor Co said on Tuesday that it was not insisting on having a controlling stake in its proposed joint venture with Bajaj Auto for manufacturing a small car in India. French car maker Renault is also one of the partners in this small car project.

Speaking exclusively to FE on the sidelines of the 2008 Geneva Motor Show, Nissan’s executive vice-president, corporate and product planning, Carlos Tavares, said, “Our competence lies in our technology and we are not eager to keep control.” 

This assumes importance as the managing director of Bajaj Auto, Rajiv Bajaj, has been asking for a controlling stake in the proposed JV with Renault and Nissan to manufacture small cars in India.

Asked about the possible launch date for the small car, Tavares said, “Our discussions are progressing well with Bajaj Auto. An announcement on the launch of our entry car can be expected in two months.” Tavares, however, refused to divulge details on the pricing of the small car in India.

Patrick Pélata, executive vice-president, Renault said, “India, one of the fastest-growing car markets and one of the most competitive supply bases in the world, will play a key role in Renault's growing global presence. With the Chennai plant, Renault wants to build a full lineup for India, following the current success of Logan. In addition, we are also talking to Baja Auto for the small-car project.”

The alliance of Nissan and Renault with Bajaj Auto for the small car is in addition to the $1.1 billion integrated greenfield automotive facility by Renault-Nissan combine at Oragadam, near Chennai in Tamil Nadu. Following the exit of their local partner — Mahindra and Mahindra, the Renault - Nissan alliance (with an equal stake of 50% each) have maintained their commitment to establish a facility with an installed capacity of 4,00 000 vehicles per year, with production beginning 2010.

The product line for this Greenfield capacity is being worked out in line with the needs of the Indian markets as also suiting to export market. 

Renault has already been selling the Logan sedan in India since May 2007 with its local partner Mahindra & Mahindra.

Nissan recently concluded a master cooperation agreement with Ashok Leyland and agreed to form joint venture companies for development and production of LCVs and LCV powertrains.