Indian Company to Debut $4,000 Car in Russia

Indian motorcycle maker Bajaj Auto Ltd. plans to introduce the Bajaj Qute minicar in Russia next spring at a starting price of 250,000 rubles ($4,000), according to the Moscow-based RBC news agency.

Bajaj touts the tiny four-seater—which is powered by a single-cylinder, 220-cc engine that makes 13.5 hp—as the world’s cheapest car. RBC says Russia’s lowest-priced car currently is a Chinese import called the Lifan Smily, which costs 320,000 rubles ($5,000).

Only 9 feet long, the Qute has a claimed a top speed of 70 kph (40 mph). Bajaj unveiled the car in September along with plans to export it to 16 countries. The company is awaiting government approval to begin sales in India.

Bajai plans to launch retail sales in Russia by April through its local distributor, East West Motors. The company hopes to sell 200-300 cars in the country in 2016, according to the news agency.

Russia’s car market remains deeply depressed, but RBC claims there is good demand for new vehicles priced below 629,000 rubles ($10,000). Car and light commercial vehicle sales in Russia plummeted 29% to 140,900 units in September, according to the Moscow-based Assn. of European Businesses. Sales through the first nine months of 2015 totaled 1.19 million, down 33% year on year.