Alliance partners Renault and Nissan have said they will set up a new facility in southern India next year. The new facility in Chennai will support engineering and other functions for the two companies’ operations around the world.

The 50-50 joint venture will provide services including product and manufacturing engineering, purchasing, design, cost management and information systems development, with more than 1,500 employees in 2010, the partners said in a statement.

The alliance partners plans to push aggressively into the fast-growing Indian market, having announced several car and truck-making projects with various local partners including Mahindra & Mahindra Ltd and Ashok Leyland Ltd.

In July, Renault opened a design centre in Mumbai to help design vehicles for both the local and other regional markets.