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New Delhi: Bullish on the India growth story, Renault chairman and CEO Carlos Ghosn on Sunday said despite differences with the Indian JV partner, Bajaj Auto, the company is all set to introduce its ultra low-cost car, initially priced $2,500 (Rs 1 lakh), in the domestic market by 2011. The French car maker has been working with Bajaj Auto, the country’s second largest two-wheeler maker to launch a low-cost car on the lines of the Tatas Nano. The JV, however, is believed to have run into trouble with the two partners not being able to resolve a host of issues related to branding and the price point.
This was evident as Ghosn parried the questions on the price, “The entry price point, which will be $2,500 is still very important for the market, not only for India, but also for lot of emerging markets. We have to bring in the car with basic feature, basic functionality at a very affordable price. Whether it is going to be $2,500 or $2,800 or $ 3,000, is to be decided, but I am stuck into making customers happy and satisfied.”
The country’s largest automaker Tata Motors, earlier this year, introduced Nano, considered to be the world’s cheapest car, with a price tag of just over Rs 1,00,000. “I know that some of our competitors like Tata have already put the car in the market. We will continue to work to bring in this car with Bajaj into the market,” Ghosn said.
Commenting upon the attractiveness of Indian market to global car makers he said, “I am very optimistic about the growth of the market in India. When you move from 2 million cars a year to 6 million cars a year, this is very appealing to global carmakers.”
He said India’s capability in frugal engineering and frugal product planning becomes key on the backdrop of the global downturn and shift towards small and lower priced products. “The products that are selling the most are the products affordable but with just necessary features and I think Indian engineers are second to none in this segment,” he added. On the issues that Renault was facing in India with its various partners, he said: “I never thought that coming to India will be right at the first time. Nobody get it right in the first time in any country, and particularly in a country with long tradition and long history like...
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