NEW DELHI -- India's biggest utility vehicles maker, Mahindra & Mahindra Ltd., plans to set up a joint venture company with France's Renault to make its Logan sedan in India, an industry source told Reuters on Monday.
"It's (the joint venture) going to happen ... the announcement is expected in a matter of weeks," the source said, adding the Logan is expected to be introduced in India next year.
A Mahindra spokesman said the company could not make any comment at this stage.
Renault is Europe's fourth biggest car maker.
The Logan -- a cheap, no-frills car developed by Renault for poorer countries -- is expected to be available for 5,000 euros ($6,500) and will compete with sedans like Tata Motors' Indigo, Hyundai's Accent and Ford's Ikon in India.
Mid-sized sedans make up 21.3 percent of India's domestic new car sales, estimated to rise to 850,000 units in 2004/05.
Mahindra, the flagship of the 80 billion-rupee ($1.8 billion) Mahindra group, makes the popular Bolero and Scorpio utility vehicles and has a 45.2 percent share of India's utility vehicles market.
Based in Bombay and set up in 1945 to make Chrysler Jeeps, it is also India's top tractor maker as well as a producer of light commercial vehicles.
Mahindra also holds a small stake in the Indian unit of Ford that makes cars and sports utility vehicles, but is expected to sell its holding when it reaches an agreement with Renault.