Ultra low-cost car project with Nissan on track: Bajaj

A day after Japanese auto major Nissan confessed that it has not found an engineering solution for its proposed 'ultra low-cost car' for India, its partner Bajaj Auto today said the small car project is going on as per the plan.

"The partners are aligned to the project and to the agreed objectives. The project is proceeding as planned," Bajaj Auto Vice-President (Business Development) S Ravikumar said in statement.

The Bajaj comments come in response to a statement made by Nissan Motor executive vice-president Collin Dodge that neither it nor Bajaj Auto has found engineering solutions for the proposed ultra low-cost car.

Nissan and its French partner Renault had joined hands with Bajaj Auto in 2008 to manufacture an ultra low-cost car, whose price tag it initially estimated at $2,500.

"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 lot of engineering solutions required," Dodge said on the sidelines of the ongoing Geneva Motor Show yesterday.

He also confirmed that Nissan is talking to the Hindujas flagship Ashok Leyland for developing a small car for the global markets that could be priced around $4,500-5,000.

In response, Ravikumar said Nissan's two Indian projects--with Bajaj Auto and Ashok Leyland--are different and non-conflicting.