Renault and India's Bajaj May Team on Ultra-Cheap People's Car

Indian media are reporting that French automaker Renault is talking with Indian company Bajaj Auto about a project to build an ultralow-cost people's car in a joint venture. However, the director of the company, Sanjiv Bajaj, told Reuters that his company was not "to my knowledge" in talks with Renault about such a project.

Renault already has an Indian joint venture with Mahindra & Mahindra, a dominant Indian auto company, and that company makes the Renault Logan in India but is reportedly not interested in pursuing the ultralow-cost car project.

Another Indian automaker, Tata, is planning a car that will cost about $2,500 and launch in 2008, Reuters reports. The news service also says that Bajaj Auto is on the verge of building its first four-wheeled vehicle and is "studying the feasibility" of building a small car.