"The venture is likely to be in place by October and the premium scooters in the 100 cc segment would be introduced within a year,'' he added.A new plant would be set up in Alwar, Rajasthan, for the new project. The partners have decided to initially produce premium 4-stroke scooters only. "We are also in talks with Renault to finally, over the next few years, upgrade to start manufacturing their jeeps in India,'' Chibbar said. This would mean a second coming for Renault into India, after it aborted negotiations with Bajaj Auto a few years ago. Renault, through its tractor manufacturing subsidiary -- Renault Agriculture, has already picked up a 20 per cent stake in the Punjab-based International Tractors Ltd (ITL) for $15 million.

Meanwhile, company sources pointed out that Renault is seriously contemplating a foray into the Indian market, more so in light of its recent acquisition of a majority stake in the Nissan Motor Company of Japan. Renault SA, it may be recalled, had recently picked up a 36.8 per cent stake in Nissan Motor and a 22.5 per cent stake in Nissan Diesel Motor Company, a subsidiary manufacturing trucks, for $5.4 billion.

This made Renault the largest shareholder in Nissan. Meanwhile, Monto Motors is also preparing to launch its indigenously developed bike. "Monto Motors has, till date, been an active player in the moped market with its three models - Avanti Kobra, Avanti Mont and Avanti Carrier. We, however, do not want to remain confined to this slow growth segment and are therefore entering the hotly contested four-stroke motorcycle segment,'' Chibbar said.

The Alwar plant will have an installed capacity to produce 30,000 units per month. "Initially, we intend to do about 5,000-10,000 units per month and expect to reach optimum utilisation within three years," he said. This venture would also mean a rebirth for the Avanti brand name. Monto Motors had initially considered its original technology provider Agretti Garelli for the venture. "However, the high prices of its models and certain other factors forced us to decide against Agretti Garelli. Avanti was, till recently, consigned to the scrap heap of India's automobile industry.

The Avanti saga started as an ill-conceived expansion of the refrigerator major Kelvinator. Later, when Kelvinator sold off its unit to Whirlpool, automobiles not being the latter's main line of business, the division was sold off to the Pacco group for Rs 9 crore. Pacco injected new life into their newly acquired moped manufacturing facility and renamed it as Monto motors. They also hired a new management team, basically consisting of people from Hero Motors. The company has now drawn up an ambitious expansion plan, which includes a three-wheeler and a mini-motorbike for the US market.

They have also planned a renewed thrust on the export front, besides the JV with Peugeot. The company has already started moving on its growth track with a relaunch of its mopeds in Tamil Nadu. Meanwhile, Monto Motors has also initiated the process of strengthening its dealer network.