The No. 2 motorbike maker of India, Bajaj Auto Limited is going to enter into a joint venture (JV) with the French vehicle manufacturer Renault for engines and transmissions later this month, Mr Rajiv Bajaj, the MD of the Indian company has been quoted as saying by a prominent newspaper. The Bajaj Auto Limited is likely to ink a JV with Renault and Nissan Motor Company for the production of low-cost cars scheduled for a 2011 launch. Bajaj will have a 51 per cent control over the venture for engines, which will supply the car as well as light trucks.

Nissan, however, will not be included in the engines JV with Bajaj, but it already has ventures with Ashok Leyland Ltd for trucks and engines. ‘We have taken this decision to form a separate JV for engines and transmissions in the past few weeks,’ Rajiv Bajaj has said. Mr Bajaj also informed that the engines and transmissions will be made at a new plant near Pune where the car will be made, whereas at the Aurangabad facility in Maharashtra the light trucks will be made. Bajaj, which will wield partial control over the small car venture, said earlier in May that it is still undecided over collaborating with Renault for light trucks and that it is well equipped to go for it alone.