Because of the economic context, the car market is quite compromised in western countries, especially in Europe. The French carmaker Renault was registered in 2008 and had to face to a 24% drop of its sales. That is why Renault, Nissan (44% owned by Renault) and Bajaj Motors (major Indian automobile manufacturer) have made a joint-venture recently, to launch a 2500 $ car, the ULC car (Ultra Low cost), in order to compete with the 2500 $ low-cost car Nano from the Indian company Tata. Why did these companies choose India? Why did they make a joint-venture? Why are they launching a low-cost model?
[...] Renault strategy in India 1. Renault, Nissan and Bajaj Motors joint-venture Because of the economic context, the car market is quite compromised in western countries, especially in Europe. The French carmaker Renault has registered in 2008 and had to face to a 24% drop of its sales. That's why Renault, Nissan owned by Renault) and Bajaj Motors (major Indian automobile manufacturer) companies have made a joint-venture recently together to launch a 2500$ car, the ULC car (Ultra Low cost), in order to compete the 2500$ Nano low-cost car from the Indian company Tata. [...]
[...] Moreover, the European image of Renault could be attractive for Asian consumers, because of the brand image power carried of quality, performance and success in Europe Why proposing a low-cost car? Renault, Nissan and Bajaj Motors decided to compete directly Tata, their main competitor in India, because of the 2500$'s Nano's car, the cheapest one in the world. Whether they had to focus on Asian and eastern market, they should have thought it was possible to compete the Nano on its own market. [...]
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