Bajaj to develop engines for Renault’s upcoming small car

Renault has made an entry into the Indian market with their Logan sedan they have launched in partnership with Mahindra and Mahindra.

The company had expressed interests in launching a cheaper compact segment car to take on Maruti and Tata Motors.

The latest news is that Indian two wheeler manufacturer Bajaj might now be making engines for this proposed small car for the Indian market.

Renault and Bajaj had said last month that they were indeed in preliminary talks on making “very competitive” vehicles in India.

Rajiv Bajaj was quoted as saying in the media about their involvement with Renault: “The heart of the whole thing is the engine. We think we have specific ideas in that context. They hinge on a very new kind of technology that we are developing in-house. We are still not sure if the technology is viable, it will take a few months to understand that.”

The two companies are expecting to launch this proposed car by 2011 if everything goes according to plans.

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