Renault-Nissan plan new biz centre in Chennai

French automaker Renault and its Japanese partner Nissan Motor announced plans today to open a new business centre in Chennai next year that will employ more than 1,500 workers by 2010.

The centre, which will be a 50-50 joint venture between the two partners, will support the two automakers' global engineering, purchasing, design, cost management and information systems operations.

Renault, Nissan and Mahindra & Mahindra are also jointly building a $902-million factory in Chennai.

Nissan and Renault are also considering launching a low-cost $3,000-dollar car in India, one of the world's fastest growing automobile markets.

Nissan has decided to join a project between Renault and Indian motorcycle manufacturer Bajaj Auto Limited to develop and produce an ultra-affordable car, the Nikkei business daily reported today without naming its sources.

Carlos Ghosn, who heads both Nissan and Renault, had previously said that Mahindra would be the "natural" partner if the company decided to produce a $3,000 car there.