The country's second-largest two-wheeler manufacturer, Bajaj Auto Ltd unveiled its idea to launch small car by next two to four years in conjunction with Renault and Nissan.

Rajiv Bajaj, Managing Director, Bajaj Auto said that the pricing of the car would not be based on Tata’s Rs one lakh car.

“We are going to enter the small cars segment in a big way,” Mr. Bajaj said.

The deal with Renault and Nissan was yet to be signed.

Mr. Rajiv said, “We hope to use Renault and Nissan dealer networks to sell the car, which will have both petrol and diesel variants, in the overseas market. In the very, very unlikely event (that talks with Renault and Nissan fail) we have every intent to move forward.”

He said that a new manufacturing facility would be established at Chakan having an initial capacity of 2.5-lakh units per annum.

The unit would also create a light commercial vehicle that the company would introduce in the first quarter of 2009.

He further stated that the company would launch three two-wheelers in the executive and premium segment during the year.

But, it refused to give details about the car's technical specifications.

BAL also plans launch KPM and Kawasaki bikes within this year. Bajaj Auto has technological tie-up with Japanese heavy machinery and engineering company Kawasaki Heavy Industries Ltd.