Renault and Bajaj Auto confirmed that they are in preliminary deliberations to jointly understand customer requirements and business potential for “very competitive vehicles”—i.e., small, low-cost (~US$3,000) cars in India.
If concluded favorably, this could lead to a long-term partnership between Renault and Bajaj for the development of the business so conceived, the companies said in a joint statement.
Bajaj Auto is a manufacturer of 2-wheelers and commercial vehicles with sales of more than 2.7 million units in FY07—including exports of 442,000 units—representing revenues of $2.3 billion (10070 Crore rupees).
Renault currently has two joint ventures in India with Mahindra & Mahindra with which the French company has two separate joint ventures. M&M reportedly is not interested in the low-cost car project, preferring to focus its long-term strategy on SUVs.