Global auto giants Renault and Nissan chief Carlos Ghosn’s plans to revive sagging car sales aided by India’s “frugal manufacturing” may have received its first jolt. Diversified Mumbai-based major Mahindra & Mahindra (M&M) is understood to have pulled out of the tripartite joint venture with Renault and Nissan, just a year after the partners announced plans to set up a Rs 4,000-crore car manufacturing plant in Chennai.

When asked for a response on reports about the pullout, an M&M spokesperson said, “We have no comment to offer as of now.”

According to industry sources, the move could jeopardise yet another existing alliance between M&M and Renault for the Logan world car.

Reports citing sources in the know said on Friday that M&M decided to quit the JV, in which it held 50 per cent stake with the remaining shared equally between the other two overseas partners, as it was unhappy with France’s Renault and Japan’s Nissan firming up multiple partnerships in India for different ventures.

This has a come as a surprise as M&M vice-chairman Anand Mahindra had earlier said his company has no problems with Renault joining hands with Bajaj Auto for a small car venture. “Renault did not approach us for a no-objection certificate, but we have no problem with its tie-up with Bajaj,” he had said.

Industry sources, however, said M&M was peeved by the fact that Renault decided to go with Bajaj Auto for the small car project, despite the fact that the partners have an existing joint venture to produce the mid-sized-sedan Logan in India.

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