India's biggest utility vehicles maker, Mahindra & Mahindra Ltd., plans to set up a joint venture company with Renault to make the Logan sedan in India, an industry source told Reuters on Monday.

"It's (the joint venture) going to happen ... the announcement is expected in a matter of weeks," the source reportedly said, adding the Logan is expected to be introduced in India next year.

The no-frills Logan, designed for emerging markets, is expected to be available for €5,000 ($US6,500) in India where it will compete with sedan models like the Tata Indigo, Hyundai Accent and Ford Ikon, Reuters said, adding that mid-size sedans make up 21.3% of India's domestic new car sales, estimated to rise to 850,000 units in 2004/05.