The country's second largest bike maker Bajaj Auto Ltd unveiled its concept passenger car and a light commercial vehicle for the Indian market on Tuesday.
Bajaj Auto expects to launch its small car in the next four years in partnership with Renault and Nissan.
The car is likely to be priced at around $3,000 (Rs 117,000).
They are developing both diesel and petrol engines. BAL would also be setting up in Chakan, a new manufacturing unit that will in all probability manufacture the small car and light commercial vehicle.
The initial installed capacity will be 250,000 units and the company will look at exporting the car, BAL managing director Rajiv Bajaj said.
Bajaj also said it will launch three two-wheelers in the executive and premium segment during 2008.
The company would launch two motorcycles -- XCD 125 cc DTS-i Sprint and Discover 150 cc DTS-i -- and one scooter 125 cc Blade within this year.
"The 125 cc motorcycle segment is getting crowded so we would upgrade the Discover to 150 cc," BAL CEO (two-wheelers) S Sreedhar told reporters in New Delhi.