Bajaj Auto Chairman, Mr Rahul Bajaj, has serious doubts about the feasibility of the company’s small-car project with Renault-Nissan, according to media reports. The project, if it comes through, will operate on very low profit margins, despite the use of two and three-wheeler parts in the car. The low-cost car will also face tough competition from the Tata Nano and other players in the market. Bajaj said that there were already 13 car manufacturers in the Indian market, with 30-40 models, and that a new small car would have to compete with other, well-established products. However, he did not openly oppose the project.

A brand name for the car has not yet been finalized. A Bajaj Auto board member said that it would carry neither the Bajaj brand nor the Renault-Nissan brand, but would have a new name. He also said that Bajaj was a popular two-wheeler brand, and would remain so. Both Rahul and Rajiv Bajaj are against using the Bajaj brand in naming the car.