New rival to Tata’s £1250 car

[Matra et Alpine]

Move over, Tata Nano. There’s another bargain basement car in town. Renault-Nissan and Bajaj Auto today confirmed their new people’s car would cost from just $2500 (£1250).

Codenamed ULC (ultra-low cost), the new car will be built in Chakan in India with around 400,000 units expected in the first year. However, the new joint venture is some way behind this year’s Tata Nano – the ULC won’t be launched until early 2011 in India.


So will the Bajaj ULC really cost £1250?

Good question. In a word, no. The $2500 starting price is a) a starting price and b) a wholesale price. So by the time the vehicle ends up on forecourts in the sub continent, it’s likely to cost a bit more than that. But then, the same could be said of the Tata Nano. It just goes to show that Ratan Tata’s aggressive price strategy has moved the goalposts in the cheap car market.

The new join venture company announced today will be half owned by Bajaj Auto, with a quarter stake each held by Renault and Nissan.

[P4g4nite]

Just goes to show how much you can cut costs when you have cars built by illiterate, 12 year children. The Republican's anti-union dream realized :P

[Matra et Alpine]

tut-tut. Not built by children. Not built by "illiterate".

[ZeTurbo]

Originally Posted by P4g4nite

Just goes to show how much you can cut costs when you have cars built by illiterate, 12 year children. The Republican's anti-union dream realized :P

cheap labour =/= illiterates and child labour

Too bad it wont be sold outside of indian market.

[Matra et Alpine]

Originally Posted by ZeTurbo

Too bad it wont be sold outside of indian market.

British Times newspaper suggests it is planned to
"Its producers hope to export to other emerging markets later, using Renault-Nissan’s established global sales network. "

[Ferrer]

Wouldn't a used european/japanese supermini be better anyway?

[dydzi]

dunno whether you know that, but bajaj is the biggest maker of rikshas in india, making it the biggest in the world

[faksta]

So, it could be one of their rikshas with four wheels and a new body...

Ah, though hardly... Renault-Nissan would provide an engine, I guess, and then it will be something different, as their rikshas use motorcycle engines..

[Lets Gekiga In]

I actually like the looks of this car more than the Tata Nano (not surprising, I guess?).

[Ingolstadt]

This looks much better than the Nano ...

On the context of illiterates and child labor. Who says putting up a few components in cars need one to be educated with 12 year's of schooling? You only need people who had both arms and legs and least, knows what you're talking bout ....

Maybe alot of you folks in developed countries dont really understand the agenda with underdeveloped countries. Child labor is not an abuse, it is a way of living, you need food to survive, then shelter, then security, then only we talk about education and stuffs like that. In under developed countries, food is the first concern, these children cant even afford food, and setting up factories in these countries by employing child labor, these companies are actually helping these people, least to survive.

Many might disagree with what I'm saying, but did you know that the general living conditions of india and poorer parts of china are almost the same with what european countries are having 200 years back? Maybe even worse than that.

Speaking of child labor, at least they dont go on strike and screw you up big time ...