Renault has invited Bajaj to further its participation in the joint venture that will develop the Ultra Low Cost car by giving Bajaj the option to pick up stake in Renault Nissan Automotive India.
The company is in the process of building its USD 1 billion-worth greenfield plant in Chennai. Besides a stake in the facility itself, Renault is trying to get the partnership with Bajaj to include marketing, sales and distribution. These talks are running simultaneously with the ones Renault is holding with Mahindra and Mahindra for distribution and marketing of Renault vehicles. M&M wants product and tech exchange, and exports as well, whereas Renault is interested only in sharing marketing and distribution responsibilities. There is no official response to these claims as of now, however, with Rajiv Bajaj refusing to comment on the issue and a spokesperson from Renault being unavailable for comment.
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