Daimler in talks with India's Bajaj, TVS - report

BANGALORE Dec 2 (Reuters) - Daimler (DAIGn.DE), the world's biggest truckmaker, is talking to India's Bajaj Auto (BAJA.BO) and TVS group to make commercial vehicles in Asia's third-largest economy, the Economic Times reported on Wednesday. The German company, also the second-biggest premium carmaker including Mercedes-Benz, will initially produce light, medium trucks by 2010 and heavy-duty commercial vehicles by 2012, the newspaper said, quoting sources familiar with the development. Officials at Bajaj Auto could not be immediately reached for a comment, while a senior TVS executive told the business daily that the company was not interested in getting into the four-wheeler segment as of now.

Bajaj Auto is India's No. 2 motorcycle maker and the top producer of motorised three-wheel rickshaws. It is working with Renault (RENA.PA) and Nissan Motor Co (7201.T) on a small car project.

TVS Motor Co (TVSM.BO), a unit of TVS group, is India's No. 3 two-wheeler maker.

"Daimler Trucks will continue with its commercial vehicle engagement in India," Uta Leitner, a spokesperson for the global business at Daimler Trucks & Buses, told the Economic Times. "The Indian market is clearly defined as a promising market."

Daimler is also talking to large auto component companies with strong distribution network in India, the paper said. (Reporting by Sumeet Chatterjee; Editing by Ranjit Gangadharan) ((sumeet.chatterjee@thomsonreuters.com; +91-80-3982 7450; Reuters Messaging: sumeet.chatterjee.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))