Renault-Nissan hints tie-up with Ashok Leyland for new car project
16 Mar 2010, 2112 hrs IST, ET Bureau

CHENNAI: Renault-Nissan strongly hinted on Tuesday that it might partner with commercial vehicle major Ashok Leyland (ALL) to produce a new
passenger car which will be positioned between its ultra-low-cost car project (ULC) with Bajaj and the v-platform ‘Micra’ car. ( Watch ) The alliance has been engaged in discussion with the ALL team, among other partners, earlier in the day. Renault-Nissan chairman Carlos Ghosn said his company is working with ALL on the evolution of some common projects. He is in Chennai to inaugurate Renault-Nissan’s maiden greenfield car plant in India at Oragadam on Wednesday. On the new car, Mr Ghosn said it has not reached any conclusion yet with its active "alliance partner" ALL. However, he ruled out any tie-up with Bajaj for this project as the latter had its "hands full" with the ULC car project. When contacted by ET, Bajaj Auto MD Rajiv Bajaj said "I don’t know what’s on their mind as we haven’t discussed the project." On the ULC tie-up with Bajaj, Mr Ghosn said "it will not be assembled in Chennai plant," he said, noting at every emerging market (India, Russia, China and Brazil) had an entry point as far as pricing is concerned. It is yet to reach negotiation stage at the contract level but the two were working together to develop this car. The car derivative would not only be for India market but also for other emerging markets, Mr Ghosn said in response to a query. Seeking to point out that Micra is coming at a "very important" segment, the B+ market, which constitutes over 50% of the Indian market, he said below Micra, there is room for many other products (in the B, A and A- categories). On Logan and its pact with Mahindra & Mahindra, the Renault-Nissan CEO said it is not satisfied with the evolution of Logan. This input has been shared with Mahindra and both are now working towards "repositioning" Logan and making it a success in India. "We have to be a bit more nimble and faster in the market," Mr Ghosn said, adding it had not yet reached any conclusion with its partnership with M&M. "Logan will be competitive and stay in the Indian market and consumers will be served," he said, adding the product would sustain its "normal life-cycle." Asked about an equity-swap deal with Germany’s Daimler, Mr Ghosn dismissed it as speculation.