Automobile firm Mahindra & Mahindra has decided to move out of its multi-brand manufacturing joint venture with French firm Renault and Japanese car manufacturer Nissan.

The three companies have decided to build up a unified facility with common facilities to make a variety of vehicles in Chennai. The companies decided to invest around Rs 4,000 crore on the project.

But, M&M was not getting the manufacturing synergy ideated from the project that’s why it backed out its name, said sources near to the development.

Now the Renault-Nissan will have a 50-50 partnership for the Chennai plant, and they both will invest about Rs 2000 crore each.

M&M’s recent decision does not mean that Mahindra and Renault products will not be made.

The facility that makes Logan at Nasik will still continue, in fact, still the Renault cars that will be produced from the Chennai plant will be commercialized through MRPL. They will be distributed and market under the similar joint venture that they had initially.

But at the moment Mahindra won’t be a part of that three-way venture that was formed.

When contacted, M&M representatives refused to comment, the sources added.