Tuesday, November 6, 2007

About Ratan Tata's 1 lakh car, Bajaj Auto - Renault - Nissan joint venture and Mahindra and Mahindra's SUV

The Tata Rs 1 lakh car project has triggered off a lot of excitement both among local auto majors as well as global biggies.

Given the jostling for market share expected in the hot hatch (Getz, Swift, U-VA) range, it was only a matter of time before the interest turned towards the entry level car.

Apart from Renault-Bajaj, there are a host of other new models being developed for India and other BRIC markets.

For Renault, the $3000 car can be its ultimate face saver. Given the sales pressures it is currently facing in Europe, the car maker needed a bold and out of the box strategy to revive both its image and its prospects.

A car pegged below the Logan, made in partnership with an Indian company, is a perfect solution. Bajaj has deep pockets, strong engineering expertise and a hunger for a global presence (it is reportedly looking to acquire a big ticket European two wheeler company like Triumph). It’s a good ally for Renault.

Mahindra & Mahindra’s larger strategy of charting a global course in the SUV market and its iffiness about the margins in this zero cost game were the reasons why it decided to stay away from the $3000 car.

M&M has been aggressively snapping up assets overseas—it has also bid for Jaguar and Land Rover and early this year bought Punjab Tractor—and is not particularly interested in locking up its funds in a project as capital intensive as this one.
:The Big Fat Small Car Marriage: Nandini Sen Gupta: The Economic Times

:Tata Indiva: Bichu's photos

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