Renault, Bajaj & Nissan agree to price low-cost car at $2,500

The partners have solved the tricky issue of pricing, which has been widely speculated as the reason for the delay in the project announced in 2008

French auto major Renault and Bajaj Auto have agreed to price the ultra low cost (ULC) car that they are jointly developing with Nissan at $2,500, (around Rs1.10 lakh) to take on the Tata Nano, reports PTI.

“In India, Renault and Nissan are developing an ultra low-cost vehicle with the Bajaj Group, benefiting from its expertise in light vehicles and the knowledge of the Indian market. We are aiming for a price of $2,500,” Renault president and CEO Carlos Ghosn said at the Annual General Meeting of the company on Friday.

When asked if this is the agreed price range, Bajaj Auto managing director Rajiv Bajaj replied in the affirmative. The partners have, thus, solved the tricky issue of pricing, which has been widely speculated as the reason for the delay in the project announced in 2008. While Renault wanted a low cost car, Bajaj was keen on a car that would have high mileage and low maintenance.

Originally, the car was scheduled to hit the market this year, but that has been postponed to 2012. It will take on the Tata Nano, which is currently available in a price range of Rs1.23 lakh-Rs1.72 lakh (ex-showroom Delhi) for three variants.

Last year, during his India visit, Mr Ghosn had announced finalisation of the project and said “as per the agreement, the design, engineering, sourcing and manufacturing will be handled by Bajaj Auto, while marketing and selling will be (done) by the Renault-Nissan alliance.”

He, however, had declined to comment on the pricing of the car.

Officials of the alliance had said that the car will be smaller than Maruti Suzuki’s Alto, which is the biggest selling model in India.

The three partners of the ULC project have been struggling to find engineering solutions to produce such a low cost product.

In March this year Nissan Motor executive vice president Collin Dodge had said, “It is over two years that Bajaj is trying to produce the car. The physics of it is very difficult. We have not yet found a solution as there are a lot of engineering solutions required.”



Shadi Katyal

7 years ago

How can one talk of this price of $2500 when car will be in the market in 2012. would inflation not effect the price at that time.Will TATA for 2 years sit and watch and not fine tune NANO?
Is this not misleading to public?

Bill introduced to make charging capitation fee a cognisable offence

Charging capitation fee will be a cognisable offence while other offences will be treated as non-cognisable and will attract some fine

A Bill that makes charging of capitation fee by any medical or technical institute a cognisable offence and empowers police to arrest the erring administrators without warrant was introduced in the Lok Sabha today, reports PTI.

The Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and University Bill, 2010 was introduced by HRD minister Kapil Sibal.

Mr Sibal also introduced in the House the Educational Tribunal Bill, 2010 that provides for setting up specialised tribunals at the Centre and the States for adjudicating matters relating to disputes in educational institutions.

The National Accreditation Regulatory Authority Bill, 2010, seeking to set up a body to assess and accredit every institution in higher education was also introduced.

The prohibition of unfair practices Bill seeks to classify malpractices into two categories. Charging capitation fee will be a cognisable offence while other offences will be treated as non-cognisable and attract some fine.

The civil offences will be adjudicated in the educational tribunals, while the cognisable offences will be dealt by courts.

At present, the fee structure in private engineering and medical colleges is fixed by a State-level committee headed by a retired High Court judge. However, there are instances of many institutes charging fee higher than that suggested by the panel.

Certain institutes demand donations for admitting students and do not issue receipts for payments made by them. They give misleading advertisements in the media with intent to cheat students. They also withhold certificates and other documents of students who want to quit the institute.

Certain institutes, which promise good quality education but do not deliver it, will face penalty under this new regulation.

“Capitation fee charged by any institute will be a cognisable offence. People will be prosecuted without fear and favour,” Mr Sibal had said after the Bill was cleared by the Cabinet.

The Accreditation Regulatory Authority Bill provides for setting norms for accreditation. The process of accreditation will be outsourced to agencies of integrity registered with the authority.

At present accreditation is voluntary. But with the new authority in place, every institute will go through mandatory accreditation.

The present accreditation agencies like National Accreditation and Assessment Council and National Board of Accreditation will function under the National Accreditation Regulatory Authority.

The purpose of creating the Accreditation Regulatory Authority is to ensure that people get quality education.

Every institute will make self-disclosure which can be audited by the accreditation authority. It will be an independent statutory body for quality control.

The authority would also monitor and audit the accreditation agencies registered under it.

The Educational Tribunal Bill provides for adjudication by tribunals the disputes pertaining to accreditation, affiliation and inter-institution matters.

The tribunals will act as forums for fast-track and speedy resolution of issues in institutions.

The legislation also provides for imprisonment for a term which could extend to three years and/or a fine of up to Rs10 lakh.

The State tribunals will adjudicate matters concerning teachers, employees and students of institutions in the respective States.

The national tribunal, having nine members, would deal with all matters concerning regulatory bodies in higher education and also matters involving institutes located in two or more States.

It would act as an appellate body against the orders of the State educational tribunals, the statement of objects and reasons of the Bill said.


China may crash

China’s economy will slow and possibly crash within a year as declines in stock and commodity prices signal that the nation’s bubble is set to burst.

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