Nissan pulls out of Bajaj Auto ultra low-cost car project

Nissan pulls out of Bajaj Auto ultra low-cost car projectJapan-based auto manufacturer Nissan has ruled out any future partnership with Bajaj Auto on a planned ultra low-cost car project.

Pune-based Bajaj Auto had reached an agreement with Nissan and its French partner Renault on a project for sourcing of an inexpensive car. Under the terms of the agreement, the Indian automaker would manufacture the inexpensive car for Renault-Nissan, which would sell the car under their brands.

While Renault remained evasive on the project from the beginning, the Japanese auto maker announced its decision to pull out of the venture on Tuesday.

Announcing Nissan's decision, Toru Hasegawa, Nissan's corporate vice-president for Indian, Africa, Middle East, said, "We will not be continuing our relationship with Bajaj Auto on that low-cost car."

However, Hasegawa did not disclose any specific reasons for putting an end to the partnership. He was speaking to reporters on the sidelines of the launch of the company's multi-passenger vehicle called Evalia in New Delhi.

The ultra low-cost car project was originally conceived to bring an efficient rival to the Tata Nano.

Following the announcement, stock in Bajaj Auto slipped -0.33 per cent on Bombay Stock Exchange (BSE).

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