India's Bajaj to sign engine JV with Renault -paper

MUMBAI, July 11 (Reuters) - Bajaj Auto Ltd (BAJA.BO), India's No. 2 motorbike maker, will firm up a joint venture with Renault (RENA.PA) for engines and transmissions later this month, the Economic Times said on Friday, citing the managing director.

Bajaj, which is expected to sign a venture with Renault and Nissan Motor Co (7201.T) for a low-cost car scheduled for launch in 2011, will own 51 percent in the venture for engines, which will supply the car as well as light trucks, the newspaper said.

The engines JV will not include Nissan, which has ventures with Ashok Leyland Ltd (ASOK.BO) for trucks and engines, he was cited as saying.

"We have taken this decision to form a separate JV for engines and transmissions in the past few weeks," Rajiv Bajaj was cited as telling shareholders in the western city of Pune, where the company is based.

The engines and transmissions will be made at a new plant near Pune where the car will be made, while light trucks will be made near Aurangabad in western India, he was cited as saying.

Bajaj, which will control half the venture for the small car, had said in May the company had not reached a decision on partnering Renault for light trucks, and was prepared to go it alone.

The car, which will be priced at around 100,000 rupees ($2,325), will compete with Tata Motors' (TAMO.BO) similarly priced Nano, scheduled to be launched later this year. ($1=43 rupees) (Reporting by Rina Chandran; Editing by Ranjit Gangadharan)