Chanchal Pal Chauhan NEW DELHI MAHINDRA&Mahindra (M&M) and French carmaker Renault are discussing the possibility of selling cars made in Renault-Nissan's manufacturing facility in Chennai through Mahindra-Renault, their 51:49 joint venture. Refuting reports of any break up with the French carmaker, utility vehicle major M&M clarified that both the auto companies are chalking future strategies jointly and are in advanced talks to sell Renault's new cars that will roll out from its (Renault's) upcoming Chennai facility in 2009-10 through the joint venture company. M&M president (automotive sector) Pawan Goenka told ET, "We are negotiating with Renault to sell their new cars, which will be launched in the next two years from Chennai. While there are no talks to take the current joint venture beyond the Logan, and M&M does not wish to introduce any more cars, we are hoping to sell Renault's cars through our distribution network under Mahindra Renault Ltd.' M& M had pulled out of the proposed Rs 4,000 crore tripartite venture with Renault and Nissan to manufacture vehicles at a new plant near Chennai. The facility was initially supposed to manufacture models for all the three partners, with an annual capacity of 4-lakh vehicles. According to industry sources, the Logan's less-than-satisfactory performance in the mid-size segment was the primary reason for M&M's decision to pull out of the venture. Both the companies had invested Rs 700 crore at Mahindra's Nashik facility to manufacture Logan with a target of sell 50,000 cars per annum. However, they sold 25,891 Logan in FY08. Now, Renault has downgraded its 2008 sales target to about 25,000-30,000 cars for FY09. Mr Goenka blamed lower sales on the huge excise differential between big and smaller cars under 4 metres length.