Bajaj plans to take on Tata’s Rs 1 lakh car

Fearing erosion in two-wheeler sales once Ratan Tata’s dream Rs 1-lakh car is launched, the country’s second largest two-wheeler manufacturer Baja Auto is seriously considering entering the passenger car market. Hero Honda, the country’s top bikemaker has already said it would foray into the four-wheeler market.

“The JD power study says that it (Tata’s one lakh car) will affect the two-wheeler market. If that happens, then we would also manufacture cars for the market,” Bajaj Auto chairman Rahul Bajaj said on the sidelines of the eighth annual convocation of IIM Indore.

Bajaj Auto, which was earlier a scooter manufacturer, shifted gears and got into the motorcycle segment when the market preference moved to the latter from scooters.

Bajaj had earlier said it would launch a goods-carrier version of a light commercial vehicle in the first half of 2009. It is also expected to a launch passenger carrier version a little later. The proposed vehicle will be fitted with a 500-600cc engine and will be available in diesel, petrol and compressed natural gas versions.

International consultancy firm JD Power had said early this week said that the Tatas’ people’s car would severely affect the top-end motorcycle segment in which Bajaj is the market leader with Pulsar. Tata Motor’s proposed car is likely to be launched in the third quarter of 2008.
The country’s largest car manufacturer Maruti Udyog Ltd’s True Value initiative has already dented the domestic high-end motorcycle market. Under True Value, Maruti dealers sell used car certified by the company at a considerably lower price compared with a new one. Maruti sells around 75,000 used cars a year under this initiative.

Bajaj rolls out hamara small car prototype

NEW DELHI: Just 48 hours before the Tata ‘people’s car’ makes its debut, another ultra low-cost car, this time from the Bajaj stable, made its appearance. The prototype vehicle will serve as the basic platform for the Renault-Nissan-Bajaj ultra low-cost (priced at around $3,000 or Rs 1.25 lakh) car.

Bajaj may invest around Rs 700 crore in the venture and is pushing to expand the relationship with Renault-Nissan to ‘Lite’ trucks as well. The company showcased two Lite trucks alongside the car prototype on Tuesday.

About the company’s plans, Bajaj Auto MD Rajiv Bajaj told ET, “Renault has seen the Lite truck, but has not committed joining us for commercial vehicles. That’s one of the issues we will discuss through the course of the feasibility study over the next one month. We are open to their participation in commercial vehicles (CVs) as well. We are hoping they will incorporate and include CVs in the scope of our partnership for the ultra low-cost car.”

The Bajaj prototype, which has been designed in house with inputs from individual consultants and specialists, will be the basic platform on which the ultra low cost-car will be built.

“In terms of direction and intent, this concept will show the way. Of course, some aspects like the external shell will change. But the size, dimensions, powertrain will be more or less the same. So it is hugely indicative,” Mr Bajaj said. The vehicle will be manufactured in Bajaj’s Chakan plant near Pune.

Renault boss Carlos Ghosn has indicated that his $3,000 car will be built on a Bajaj platform with an Indian powertrain. It will have design and chassis cues from Renault. “Other than the chassis, body and interiors, the engine, transmission, steering system, brakes and suspension of the final product will be similar to the prototype,” Mr Bajaj said.

When productionised, the car will give twice the mileage of current B-segment small cars with its gasoline engine. And it will have multiple powertrain options. “We will also have a diesel option and one can always build LPG, CNG and hybrid options on to the platform as well,” Mr Bajaj said. For diesel, Bosch is “one option”, he added.

Bajaj is pitching for higher mileage as the selling point for its car. “Fuel cost is a greater component of the running cost of the car; so doubling fuel economy does more to lower the cost of the car than halving the price,” he said. “We hope the technical specs and features of our car should be quite new and that is what will provide fuel economy,” Mr Bajaj added.

Bajaj will be launching its Lite CVs in 2009. Two models with short and longer wheel-bases were presented on Tuesday. These two base models could then have varying body frames for various applications like open-bodied pick-up vans, close-bodied delivery vans, soft drinks, gas cylinder carriers etc.