New Delhi: French carmaker Renault on today said
it is committed to bringing in a low-cost small car as the
concept is still relevant not only in India, but globally
also, despite differences with its partner Bajaj Auto.
Renault has been working with India's second largest
two-wheeler maker Bajaj Auto to launch an ultra low-cost car,
which was initially tagged to be around USD 2,500 (about Rs 1
lakh), in the domestic market by 2011 and is, at present,
reportedly facing difficulties on host of issues such as
branding and price point.
"The entry price point, which will be USD 2,500 is still
very important for the market, not only for India, but also
for lot of emerging markets. We have to bring in the car with
basic feature, basic functionality at a very affordable
price," Renault Chairman and CEO Carlos Ghosn told reporters
here on the sidelines of India Economic Summit here.
He, however, declined to comment if the proposed small
car would stick to earlier announced price point of USD 2,500.
"..(whether) It is going to be USD 2,500 or USD 2,800 or
USD 3,000 (not sure)... (but) I am stuck into making customers
happy and satisfied. But it is not going to be very far of
...," Ghosn said when asked if project is stuck due to
differences on the price of the car with Bajaj.
India's largest auto maker Tata Motors, earlier this
year, introduced Nano, considered to be the world's cheapest
car, with a price tag of just over Rs 1,00,000.
"I know that some of our competitors like Tatas has
already put the car in the market ... its moving on. We will
continue to work to bring in this car (with Bajaj) into the
market," Ghosn said.
Bullish on the Indian market, he said: "I am very
optimistic about the growth of the market in India. When you
move from two million cars a year to six million cars a year,
this is very appealing to global carmakers."
He said India's capability in frugal engineering and
frugal product planning becomes key on the backdrop of the
global downturn and shift towards small and lower priced
products.
"The products that are selling the most are the products
affordable but with just necessary features and I think Indian
engineers are second to none in this segment," he added.
On the issues that Renault was facing in India with its
various partners, he said: "I never thought that coming to
India will be right at the first time. Nobody get it right in
the first time in any country and particularly in a country
with long tradition and long history like India."
Bureau Report