Indian auto Market for the first time got its model in small car segment in face of Tata Nano, the small wonder. But recently the 'people's car' was in news as these were reported to catch fire on road that marked a big question mark on the security factor of Tata Nano. But the small car segment seems not much affected with the incidents as Bajaj Auto, the one of the leading auto manufacturers in India, is investing high on the ULC (Ultra Low Cost) car project.

As per the reports, Bajaj Auto Ltd. is investing high on the low cost car project. The reports also says that the ULC (Ultra Low Cost) car project is not controlled by Baja only but it will be a joint contribution from Renault-Nissan and Bajaj Auto Ltd. The launch of this amazing concept is expected to be scheduled in mid 2012 and will be priced competitively at 1.5 Lakh only.

Pointing to the issue, Mr. Rajiv Bajaj who is the Managing Director of Bajaj Auto Ltd commented that the company was encouraged with what was happening with Tata Nano and from there they derived spot-on strategy. He also said that since the idea of ULC category car came in mind, he decided that the model is not going to wear a badge of any brand of any partner but will dress in its own identity which will give it an exclusive brand anonymous in market. According to him, exclusive brand strategy for the car will be the key discriminator for ULC car from the Tata Nano. As partners, Bajaj and Renault-Nissan are working hard on giving this affordable small car a mileage of 30 kmpl which will come up as the main selling feature of the car. If the plans take its shape, the model will create a milestone in the segment. Mr. Bajaj also laid stress on the front-end strategy where the car will be placed neatly which was a prominent drawback in Tata Nano. The company is planning a good brand strategy for this affordable car which according to the company officials, is the most important element for new small car after Tata Nano.