Renault said it has not held talks with India's Bajaj Auto to partner on

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a $1 billion manufacturing alliance with Nissan Motor Co to make cars and powertrains in a new plant near Chennai.

A report on Thursday had said Renault and Nissan, which are also developing a $2,500 car with Bajaj, were in talks to rope in the Indian motorbike maker for the Chennai project to make 400,000 cars and powertrains from 2010.

Renault late on Thursday said in a statement the report was "speculative (and) unsubstantiated", adding "there have been no talks with Bajaj Auto to partner us in the Chennai project".

The report had also said Renault and Nissan were negotiating with Bajaj to distribute the vehicles that will be made in Chennai through the Indian firm. Renault, which makes the Logan sedan in a venture with Mahindra & Mahindra Ltd, said it was still in talks with Mahindra for distributing Renault/Nissan vehicles through that venture, as previously agreed.

Mahindra earlier this year pulled out of the Chennai project. Renault has committed about 5000 crore rupees ($1.2 billion) so far to the ventures with Mahindra, Nissan, and in its design and logistics centres in India, it said.