Bajaj Auto on Tuesday unveiled a mini four wheeler for intra-city urban transportation targetting three wheeler customers.
The company, which had in 2008 showcased a concept small car but decided not to go ahead with the project, will launch the new product named RE60 later this year.
"Certainly, this is a product, the core customer for which are those who use a three wheeler," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj said.
He said the RE60, powered by a 200 cc rear mounted petrol engine, could also be sold in overseas markets where BAL's three wheelers are exported.
Bajaj said the company had spent nearly four years in developing the product that has a top speed of 70 kmph with a highest mileage of 35kmpl.
"This vehicle has been designed for intra-city passenger transport keeping in mind intra-city duty cycles and safety requirements," he added.
Commenting on the potential of the vehicle, he said the company expects a big growth opportunity by targeting the three-wheeler segment.
Bajaj, however, did not share sales targets for the new product but said opportunities are not only in the domestic market but overseas as well.
"We make about 5,20,000 three-wheelers a year of which only 2,00,000 are sold in India and rest exported. So we see markets like Sri Lanka, which could be the first export market has huge potential for RE60," he said.
Asked about the association with Renault-Nissan alliance, Bajaj said: "They have not seen the product yet and will be seeing it at the Auto-Expo. Once they see it, we will decide the way forward."
As per an agreement with the Renault-Nissan alliance, BAL was supposed to develop and manufacture the vehicle and sold under the badge of the alliance.
In January, 2008 BAL had unveiled its concept passenger car with an expected price of $3000. It had partnered Renault-Nissan for the ultra low cost (ULC) car project.
The ULC was first scheduled to hit the roads in India in 2011, but was delayed due to differences between the partners on pricing and design.
While Renault-Nissan wanted to price the car at around $2,500, Bajaj insisted on lowering the overall cost of ownership.
In 2010, Renault-Nissan announced the signing of a memorandum of understanding with Bajaj Auto to take forward their ULC car project.
on Tuesday launched its low-emission small car the RE 60, developed in partnership with Nissan and Renault.
Bajaj has been working with Nissan Motor Co and Renault SA on a project to develop what was originally planned to be an ultra low-cost mini car. Bajaj has not disclosed its pricing yet, but it is said to be an ultra
low-cost car touted as a competitor to Tata Nano , which is presently the cheapest car in the world.
According to sources, the car has an 800 cc petrol engine compared to Tata's 624 cc engine. Also, it is slightly more spacious than Nano.
Bajaj Auto will announce the final price and other specifications of the car at the New Delhi auto show. The first prototype of the car was shown in 2008 at the Indian Auto Expo.
Though no clear details are available, the car is a five-seater, like Tata Nano, and boasts of 30 km per litre mileage. This compares to Nano's mileage of 23 km per litre. The car will be pitched against Tata Nano, Maruti Suzuki Alto and Hyundai Eon.
Three years ago, Bajaj Auto, Nissan Motors and Renault announced that they would work on a small car, which will be priced lower than Tata Nano.
According to the initial agreement, Bajaj Auto was to work on the model, while Nissan and Renault were to be responsible for sales and marketing. However, after Nissan and Renault launched their cars on the Indian roads, rumours were rife that Renault was not happy with the model and at one point of time it was also believed that the project has been shelved.
However, after a few disagreements the project was back on track. Bajaj was working on the model for one year.
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