It is not so much of a car, but a vehicle that Bajaj Auto will use to fight against biggies like Tata Motors and Maruti, reports CNBC-TV18.

Not too long from now, Bajaj Auto will go for a slice of the Indian passenger vehicle market.

Bajaj is developing a six or eight-seater vehicle that could compete with Maruti's Omni van or even the more recently launched Tata's Ace Magic.

It will be Bajaj's debut in the four-wheeler market. But the company's managing director Rajiv Bajaj is sure about its success against rivals like Tata Motor's Ace Magic.

Says Bajaj,  "The product can be loosely called a van, like Maruti Omni."

Unlike the Ace Magic or Maruti Omni, Bajaj is planning to offer both petrol and diesel engine options for its new vehicle. The new brand will be priced competitively; Bajaj is planning a large-scale production with an investment of up to Rs 750 crore.

Bajaj adds, "Products such as a van or car or cargo carrier should be priced between Rs 1 lakh and Rs 2 lakh. In such a case I would imagine it would be necessary to make and sell half a million vehicles a year, otherwise it would not make any sense from the profitability point of view."

Bajaj Auto is busy working on its first vehicle for passenger application, the launch plan of of which has not been finalised yet. However, it says that it would launch its cargo carrier by 2009.