New rival to Tata’s £1250 car

By Tim Pollard

Motor Industry

12 May 2008 11:29

Move over, Tata Nano. There’s another bargain basement car in town. Renault-Nissan and Bajaj Auto today confirmed their new people’s car would cost from just $2500 (£1250).

Codenamed ULC (ultra-low cost), the new car will be built in Chakan in India with around 400,000 units expected in the first year. However, the new joint venture is some way behind this year’s Tata Nano (pictured) – the ULC won’t be launched until early 2011 in India.

Good question. In a word, no. The $2500 starting price is a) a starting price and b) a wholesale price. So by the time the vehicle ends up on forecourts in the sub continent, it’s likely to cost a bit more than that. But then, the same could be said of the Tata Nano. It just goes to show that Ratan Tata’s aggressive price strategy has moved the goalposts in the cheap car market.

The new join venture company announced today will be half owned by Bajaj Auto, with a quarter stake each held by Renault and Nissan.

By Tim Pollard