What’s in the name

Just months after ratan tata showcased the nano, rajiv Bajaj is ready with his prototype of the small car in alliance with Renault. However, the small car plans of the Bajaj-Renault JV haven’t really been able to match the pace of the former so far. In fact, the prototype that was showcased in 2008 carried a Bajaj logo, but during his last visit, Carlos Ghosn, CEO, Renault, said that there were some branding issues and Bajaj Auto may not get a place for its logo on the car. But then, one should not forget that Renault has not yet tasted success on the Indian turf. While its JV with M&M is riding through choppy waters (with the falling sales of Logan, its tie-up with Ashok Leyland too is on the rough lane. This makes it all the more imperative for the French automaker to get its small car strategy right in India. “Keeping in mind the size and potential of the Indian small car market, getting the small car right will be vital for both Bajaj and Renault,” explains auto expert Tutu Dhawan. Moreover, there will be millions of Tata Nano running on the road by the time the duo launches its product in 2013. So, before thinking of giving competition to Nano, Renault should re-consider putting Bajaj’s logo on the small car as despite being new to the four-wheeler industry, the small car may benefit from Bajaj’s existing brand equity in the country.

Pawan Chabra

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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