Rome, Sep 5 (DPA) Fiat and its Indian partner Tata Motors are working on a "low-cost" automobile priced at around euro 2,000 ($2,570) intended for the growing Indian market, according to Italian media reports Tuesday.

Fiat chief executive officer Sergio Marchionne was quoted by daily La Repubblica as saying the Italian carmaker would provide Tata with "technological know-how and perhaps money".

The project follows a series of recent deals between Fiat and India's largest heavy vehicle manufacturer and should become operative "relatively soon", Marchionne said.

Renault of France recently launched a low-cost sedan, Logan, whose sales have so far exceeded expectations.