Bajaj launches low-cost small car RE60

Bajaj Auto, the world's largest maker of three-wheeler vehicles on Tuesday launched its first-ever four-wheeled vehicle RE60, targeting the low-cost car at budget-conscious customers and commercial users.

Claiming an exceptionally high mileage of nearly 40 km per litre of petrol and very low carbon emissions, the four-seater over-sized hatchback will go head to head with Tata Motors' Nano, billed as the world's cheapest car.

Slated to be launched this year, the unveiling of the car ended months of speculation by the industry on the nature of the vehicle that had first been showcased as a concept mini-car to be developed by Bajaj along with France´s Renault SA and Japan´s Nissan Motor Co in 2008.

Speaking at the launch, Bajaj Managing Director Rajiv Bajaj told reporters that that the two companies are yet to see the final product and will decide on co-operation on the RE60 in the next few days.

"They have not seen the product yet. They have seen only on virtual media. They will see it in Auto-Expo. If they are disinterested in the four wheeler they are free to walk away," Bajaj said.

"At no point we intended to be contract manufacturers for Renault-Nissan... With small or big modification, we can supply to Renault-Nissan if they wish," he said.

Bajaj, which is India's second-largest two-wheeler maker, will manufacture the RE60 at its plant in Aurangabad and is mulling exporting the car to countries like Sri Lanka first before making it available in India.