There will be no joint venture to produce and sell the much hyped Ultra Low Cost car by Bajaj-Renault-Nissan. Instead there will be a ‘Simple Original Equipment Manufacturer arrangement’ between the Indian partner and the French-Japanese duo, says Bajaj Auto.
The original plan was to form a JV where Bajaj Auto will hold 50 percent stake and the rest 50 percent will be shared equally between Renault and Nissan. Bajaj Auto says it can meet the objective of the partnership ‘without the need to necessarily create a new corporate entity in the form of a joint venture (JV).’
In the car project, Bajaj Auto is responsible for development/manufacture while Renault-Nissan will be responsible for its marketing and sales. The Ultra Low Cost (ULC) car will roll out in 2012.