Bajaj to come out with Rs 2-5 lakh car

Bajaj Auto is likely to come out with a car priced between Rs 2 lakh and Rs 5 lakh, according to reports in Business Standard. The company plans to show case the concept of the proposed car at Auto Expo in January 2008.

“We are aiming to come up with a concept passenger vehicle by January 2008 and if the response is good, it will take us three years to go in for commercial production,” Rahul,Bajaj was quoted in Business Standard.

The company is also working on the commercial launch of a four-wheel goods carrier by 2009. The engine, transmission and platform will be same as the passenger car. The main reason to opt for a goods carrier to start the group’s foray into four-wheelers instead of a passenger vehicle was that it did not have much competition. The company has earmarked Rs 750 crore for a four-wheeler production plant to manufacture 40,000 to 50,000 vehicles annually.

The small car market has attracted the attention of a lot of players. Tata Motors is expected to showcase its small car in the same Auto Expo and the industry expects the car to be launched by the middle of the year. Renault-Nissan has also talked about a sub-$3,000 passenger car. Honda, Toyota and General Motors have all announced a range of cars that will be priced below Rs 5 lakh.