Nissan is reportedly in talks with Hinduja Automotive to acquire a stake in the latter’s engineering unit Defiance Technologies.

The Economic Times said the two companies are negotiating and are working out various aspects such as the responsibilities and role of Defiance after a deal, sources told the newspaper. Nissan could take a stake of 20-40%.

Defiance Technologies has more than 100 engineers who have worked on the Datsun Go project for more than two years. According to the sources, one of the major reasons for the car’s attractive prices was the low-cost development and engineering, in which Defiance played a key role.

Defiance is also playing an important role in Datsun’s i2. Meanwhile, the company is also in talks with other automakers like Volkswagen about their future products.

Ashok Leyland owns 29% of Defiance Technologies. A spokesman did not comment directly on the talks.

Nissan Motor India declined to comment.