Indian two-wheeler maker Bajaj Auto and French automaker Renault issued a statement saying they were close to concluding a business partnership for Renault's proposed plans to manufacture a 3,000-dollar car. The companies said they were in preliminary deliberations to jointly understand customer requirements and business potential for very competitive vehicles in India. Bajaj Auto said that if the deal concluded favourably, this could lead to a long-term partnership between Renault and Bajaj for the development of the business so conceived. The Economic Times reported that a top-level Renault team was in India last week to discuss the proposed partnership.

After Renault launched the low-cost Logan model in India in April in conjunction with the Indian group Mahindra and Mahindra, the country has become a key development target for the French group. Renault is also building a manufacturing plant in the southern city of Chennai in partnership in cooperation with the Mahindra group and Japan's Nissan. India's car market is expected to grow by ten percent annually to reach two million units by 2010 as soaring economic growth boosts the buying power of consumers. India's Tata group is expected to roll out its low cost vehicle, between 2,457 and 3,017 dollars, in 2008.