A few days ago there were rumors floating around about a new agreement between Bajaj Auto and Renault. Sure enough, the two marques have announced a partnership to build Tata Nano rival. They announced that the new vehicle that is under development, named ULC (which probably comes from Ultra Low Cost), will be put on sale in India by 2011 for about $2,500. They expect to sell 200,000 cars per year. A new 400,000 unit factory will be built in Chakan (Maharashtra state). India is the initial target market, but if the US credit markets don't get sorted out the U.S. could be looking for something like this soon too.

Bajaj is India's largest motorcycle manufacturer and Renault has already quite an experience with low-cost vehicles, with the largely successful Dacia Logan. This reopens the debate once more: Having more and more cars on the roads is not good for the planet, but who can withdraw people in developing countries right to drive cars when we've driven them before?

[Source: Nissan, Autoblog en español (Sam Abuelsamid contributed to this post)]

We recently had a short email exchange with the president of Bajaj USA, Al Kolvites, and we were informed that the 3-wheelers, known as rickshaws in some other countries, are no longer available in the states. Kolvites cites the manual transmission as one major reason as to why the 3-wheelers didn't sell very well in the U.S. Apparently, modifications were needed to make the machines DOT and EPA compliant, and Bajaj did not see the point of making the required changes considering the low number of units actually sold in the U.S. Kolvites says that he had asked for an automatic transmission version to sell here, but Bajaj declined, saying that most of their customers preferred the shift-it-yourself tranny and the mileage benefits that generally accompany them.

Bajaj USA has sold out of the inventory of 3-wheelers, meaning that if you want one, you'll need to scour the used market. We're truly sad to hear that the venerable rickshaw is no longer available in the states, especially considering the fuel mileage that the unique machines were capable of.

Motorcycle, scooter and moped manufacturers in India are worried. Since Tata announced their ultra-cheap Nano, the two-wheeled industry is abuzz with worry that the populace will quickly abandon their old single-track vehicles for the safety and convenience of a four-wheeler if the price points get too close. This is a rational concern, and it is exactly why Tata's created the Nano in the first place.

In an effort to persuade buyers to stick with their bikes, the major manufacturers in India, including Bajaj, Honda and Kinetic, are all working on natural gas options for their various offerings. According to this article, each of these companies has contacted Energtek, a leader in absorbed natural gas (ANG) technology for help in implementing the conversion process. The advantages to using the ANG lie primarily with price, however there are also eco-benefits to be had, as natural gas burns cleaner than other fossil-fuels. We have to wonder, though, what would stop companies like Tata from using similar technology in their low-priced automobiles.

Related:

• VIDEO: Live reveal of the $2,500 Tata Nano
• Here's the $2,500 Tata Nano, the Indian peoples car

[Source: Red Orbit]

Currently, there are a few small manufacturers marketing in the small, three-wheeled vehicle segment. Obviously, ZAP comes to mind with their electric Xebra sedan and pickup truck. Bajaj sells small three-wheeled utility vehicles here as well. It looks like we can add Trifun to that list, as they reportedly plan to sell a few thousand three-wheeled vehicles this year in the U.S.

A high quality 1 liter four cylinder engine, manufactured by GM joint venture Wuling, powers pickup truck, sedan and surrey - basically a sedan with a removable canvas top - models. Each machine also features a 5-speed manual transmission and should be capable of highway speeds. These vehicles, all of which come equipped with air conditioning standard, are expected to start just under $10 grand, placing them a bit higher than the less-speedy Bajaj units but undercutting any traditional sedan available in the states.

[Source: Trifun via Jalopnik]

A few years ago, Bajaj stopped making their Chetak and Legend scooters, and since then there has been a dinstinct lack of any steel-bodied, manual transmission, 4-stroke scooters on the market. Genuine Scooters has begun selling their Stella scooter again after a short absence and Vespa themselves re-released 500 of the PX150 model to the American market, but both of those machines feature 2-stroke engines. Bajaj made some pretty compelling claims regarding the emissions improvement of their 4-stroke engine as compared to the original 2-stroke powerplants like those used in the Stella and PX150, so scooter riders who feel the need to ride "green" machines have been forced to scour the used market or buy a newer "twist and go" style model. There are a few rumors circulating, though, which could change all of that. The Stella scooter is made in India by a company called LML, and that same company may begin creating four-stroke, steel-bodied scooters using an as yet unnamed 4-stroke motor ranging from 125cc, 150cc and even 250cc versions.

If LML does start making 4-stroke Vespa PX clones, we can foresee a huge market for them in the States. We would love to see Genuine Scooters offer these models alongside their current range of Stella scooters, keeping the vintage designs in dealer showrooms for years to come.

[Source: 2-Stroke Buzz]

It's just two days before the debut of Tata's $2,500 car and a major U.S. car maker blinked. Ford said Tuesday it will invest $500m in a vehicle plant in India. Ford also says a significant part of that investment will go toward making a small, inexpensive car. Ford is not alone in trying to grab headlines away from Tata.

Bajaj Autos, Indian's first and the world's fourth largest maker of three wheeled vehicles, has decided to add a wheel and is getting into the car market. "It would be inappropriate to say that it will be priced at a lakh or two or anywhere in between because is too premature," says Bajaj. The car, which is two to four years away, "will set a new benchmark in terms of fuel economy and offer twice as much as the current crop of small cars," according to Bajaj. Will increasing fuel efficiency come at the expense of more important things?

The New York Times wrote an article about Tata's $2,500 car with a compilation of the cost-cutting measures. The Times article questions the environmental claims from the company that the car would have low emissions (more precisely, that a car this cheap could maintain low emissions for the life of the vehicle). Go below the fold for the quote from the Times.

Related:

• The real reason Tata's Rs 1-lakh will change everything: it's green!
• Tata's $2,500, 59-mpg offering described as "eco-car," on display in January
• Tata claims $2,500 car will be the cleanest in India

[Source: New York Times, Business Week, IBN Live, Hindu Business Line]

Usually when we mention Piaggio on these pages, it has to do with their popular line of scooters. This time, though, we are focusing on their three and four-wheeled line of utility vehicles. The popular Ape model and the rest of the three-wheeled variants that Piaggio offers in India are getting an optional CNG engine. Calling it a "benchmark in eco-friendly transportation", Ravi Chopra, chairman and managing director of Piaggio Vehicles Pvt. Ltd, said, "In cargo industry we have a significant market share of 44 percent as we are the pioneers of the three-wheeler category in the world. The launch of CNG version of the ape will help us to fulfill our commitment to provide eco-friendly, efficient and powerful three-wheelers in the country."

Additionally, Chopra said, "One has to grow the platform (of four-wheelers). In the next two years we should be able to introduce variants of the sub-one-tonne truck ... The vision is to create another platform beyond the sub-one-tonne but less than two tonnes by 2010." It sounds like Piaggio has goals of becoming a major player in the light-utility market so popular in India.

Lastly, Piaggio is planning to start making their own diesel engines for use in their three and four-wheelers. "We are creating the facility with a capacity of 200,000 engines. The progress is on schedule," says Chopra. That should make for an interesting mix of choices, with gasoline, CNG and diesel engines being available in three and four-wheeled passenger and utility models. Too bad we don't get any of 'em here. Well, except for these, but only in gas versions.

[Source: Piaggio, various]

India's major automakers, Tata Motors, Bajaj Auto, Mahindra & Mahindra, Ashok Leyland and Eicher Motors, have put aside their rivalry and come together in a project to create an optimal mix of hydrogen and compressed natural gas (CNG). If successful, the fuel mix - referred to as Hithane - will reduce emissions, improve fuel efficiency and work in existing vehicles.

Seven different types of vehicles are being provided by the participants for testing as part of the project which is being undertaken in conjunction with the Indian ministry of New and Renewable Energy. Hithane blends ranging from 10 - 30 percent will be tested in the vehicles which include light commercials, three-wheeler autorickshaws, an SUV and a passenger car.

(story continues after the jump)

I assume at least some of our readers are familiar with the Autorickshaw. They are a three-wheeled alternative means of transportation. If you don't know of them, here is a link to where you can buy one, even in the USA. Most of the vehicles are built in India, where they are in service as people-movers and taxi-cabs and personal transportation. They are closely linked with scooters, with which they share many assemblies. You drive the vehicles with bars just like a Vespas'. There is one wheel in front, two in back... they are not really known for their safety as they are rather top heavy and the one front wheel is a great pivot point. What they are known for is being durable and able to survive some of the toughest roads in the world. And now, they are known for racing. Well, not really known for it, but they ARE doing it. I hear that they get GREAT gas mileage! If it sounds like fun to you, check out the site. Perhaps you can race around on three wheels in India next year. I think it would make a great story to tell the grand-kids!

Related:

• Ever wanted to race a 60-mpg Autorickshaw through southern India?

[Source: Indian Autorickshaw Challenge via 2 stroke buzz]

As energy needs increase in India, the country is becoming more conscious of harmful emissions. Bajaj Auto recently announced that Orbital will supply fuel injectors for the company's auto-rickshaws that run on LPG and CNG. The two companies were already working together on gas models.

The Indian government established emissions standards in 2005 and will make them more stringent in 2010. CNG has been mandated for commercial vehicles in Delhi.

[Source: The Auto Channel]