Renault boss Carlos Ghosn announced a tie up with Bajaj to build a cheap car. The car’s price is expected to be $ 2,500. The vehicle is expected in the middle of 2011.

Ghosn told in a Renault shareholder general assembly. “We’re sticking to our objectives of a 4.5 percent operating margin for 2008… and we are maintaining our volume growth projection of more than 10 percent. The first months of the year have not been easy. Everything suggests that the next few months will not be either, given an economic and financial environment that is both unfavorable and volatile.”

“The hike in raw materials prices has been stronger than foreseen at a time when the European market is contracting,” notably in Spain and Italy.” he added.

Renault is starting a plant in Chennai - Tamilnadu. The company has planned to launch electrical vehicles by 2012.

Categories: Auto, Tie-Ups
Tags: Bajaj, cars, features, Renault