Renault-Nissan shelves ultra-low-cost car project in India

According to the Economic Times, Renault-Nissan has shelved its ultra-low-cost car project with Indian-based two-wheeler manufacturer Bajaj Auto without citing its reasons. “There is no concrete program with Bajaj now. You can say the small car project with Bajaj has been shelved,” said Toru Hasegawa, Nissan’s corporate vice-president (Africa, Middle East, and India).
Under the terms of agreement between Renault-Nissan and Bajaj Auto signed in 2009, the Indian automaker would contract-manufacture the low-cost car for the Japanese-French alliance, which would sell the car under its own brand. The car, named the RE60, is powered by a 200cc rear-mounted gasoline engine with a top speed of 70 kilometers per hour (44 mph), and offers fuel efficiency of 35 km per liter (82 mpg). It was unveiled at the 2012 Auto Expo in New Delhi in January this year.
Bajaj Auto’s Managing Director, Rajiv Bajaj, however, said that he has not heard from his partners on this issue. “Since I’ve heard nothing [I] can’t comment,” said Bajaj when asked about the report.
Meanwhile, Nissan launched its Evalia multi-utility vehicle (MUV) in India in September, in the hope of tripling its sales by the end of fiscal year (FY) 2013-14. It plans to introduce 10 models in India by March 2016, aiming to capture 8% of the local passenger car market. The company expects to double its sales in India this FY ending March 31, 2013. The Evalia is a seven-seater, and is available in four variants – all diesel, and powered by Renault’s 1.5-liter K9K dCi engine. The engine has peak power of 85 bhp and maximum torque of 200 Nm. The model has been priced between Rs849, 000 and 999,000 (US$15,976 and US$18,799). (September 26, 2012)