Renault-Nissan and Bajaj Auto plan to expand their low-cost car joint venture in India

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to make bigger cars and multi-purpose vehicles, a Delhi-based business daily reported on Friday.

"There's no way one can compete with a single product in any market, be it cellphones or motorcycles or cars," the newspaper quoted Bajaj Auto Managing Director Rajiv Bajaj as saying.

"So, we are planning a portfolio of products. There would be different products, not just variants of the same product at different price points," Bajaj said.

The companies would sign an initial agreement on the expansion by July, the newspaper said.

The joint venture, which was formed in May this year, will start by making cars with prices starting from $2,500, putting it squarely in the same range as Tata Motors' Nano.

It has a planned capacity of 400,000 units a year. Sales will start in early 2011 in India, with potential in other emerging markets around the world.

Car sales in India, forecast to nearly double to 2 million units by 2010, has grown at an annual rate of about 15 percent in the last five years, helped by higher incomes and new launches.