The Hindu Business Line : Renault, Bajaj Auto discuss joint venture plan

Mumbai, July 28 The two-wheeler major Bajaj Auto and the French auto maker Renault confirmed on Saturday that they are in talks for a possible joint venture to make vehicles in India.

In a joint press release issued here on Saturday, the companies said they are in preliminary discussions to jointly understand customer requirements and business potential for very ‘competitive vehicles’ in India.

If the discussions are found commercially favourable, it could lead to a long-term partnership between Renault and Bajaj Auto, it said.

$3,000 car plan

According to news reports, Renault is planning to make the $3,000- car in India in collaboration with a local partner.

Earlier, Renault was in talks with Mahindra & Mahindra for the same programme but according to media reports, the Indian auto company was not keen to enter this segment. The company’s focus lies in the segment it is currently in i.e. the utility vehicle segment.

The French company currently has two separate joint ventures in India with Mahindra & Mahindra. The first one primarily is for contract manufacturing of the mid-size sedan, Renault Logan; it also includes the marketing and distribution of the sedan.

The second is a three-way joint venture between Renault, Nissan and Mahindra & Mahindra, that of putting up a greenfield facility in Chennai.

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