Bajaj-Nissan-Renault JV to be signed this month

Addressing the annual general meeting of the newly formed Bajaj Auto at its Akurdi plant, Managing Director Rajiv Bajaj said, the low cost car would roll out by 2011 only from its upcoming facility in Chakan. Replying to a number of queries raised by share holder, which revolved around company's profitability and future plans, Bajaj said, "The 50:25:25 basis joint venture between Bajaj Auto, Nissan and Renault would be finalised this month with signing of an MoU. We are also finalising another 51:49 joint venture with Renault to manufacture engines and emmission systems in Chakan for our car as well as light commercial vehicles to be manufactured at Waluj near Aurangabad."

He informed the meeting that the company plans to sell 2.50 million vehicles this year to maintain a market share of 32.5 per cent. "We are the market leaders in the entry level as well as top level motorcycle segments in the market. Our aim is to increase the top level segment share and concentrate on the middle level two wheeler segment," Bajaj stated.

Bajaj has already announced its plans to launch a car priced around $2,500 (Rs 1,05,00 approximately) to compete with Tata Motors' Nano that is expected to hit roads by October this year. "The $2,500 price of the car is not our focus. We are more focused on the quality and emmission norms of our vehicle," he added.

Bajaj Auto has recently announced a voluntary retirement scheme (VRS) for its workers at the Akurdi plant that stopped manufacturing from last August. "We are paying Rs 17.75 lakh to every worker as a settlement amount. However, disputes within the workers have put breaks to this scheme. We expect the workers to sort out this issue within a month," he added.