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.

Also, the fact that Nissan firmed up agreement with Ashok Leyland for three separate joint ventures for light commercial venture manufacturing in India added to M&M’s decision not to be a part of the tripartite joint venture any longer.

When contacted, a Nissan official from Tokyo declined to comment, while Renault officials were not available for comment.

The trilateral joint venture was supposed to have a manufacturing plant spread over 1,100 acre at Oragadam, south of Chennai, with a capacity to produce 400,000 cars and utility vehicles.

The manufacturing facility was scheduled to be commissioned in 2009 and was also expected to manufacture power trains for both Renault and Nissan.

Joint Pains

•Move could jeopardise existing alliance between M&M and Renault for Logan world car

• M&M is believed to be unhappy with Renault and Nissan for forming multiple partnerships in India

•Mahindra had earlier said he has no problems with Renault tying up with Bajaj for car