General Motors India has decided to sever its ties with electric car company Reva following Reva’s acquisition by Mahindra & Mahindra earlier this week.

GM India and Reva were working on plans to develop a small test fleet of 15 electric version of GM’s Spark small hatchback by the end of this year.

“In March-April this year, we (GM and Reva) had decided to scale back the development of an electric Spark, meant for consumer market, to a small test fleet. But now, M&M buying into Reva, we have decided to stop that as well,” GM India president and managing director Karl Slym told reporters in Gurgaon.

He said GM India will now independently pursue development of small electric car.

“Worldwide, General Motors has the capability to develop electric cars. Now we will look at internally utilising those capabilities for electric small cars in India, which could be Beat or Spark,” Slym said.

“Had M&M not taken over Reva, we would have continued with the test fleet… We did not come to a final robust solution with Reva,” Slym added.

Mahindra, the SUV market leader in India, announced earlier this week that it had acquired 55% of Reva as it looks to expand its product portfolio into passenger cars beyond the Logan that it was building in partnership with Renault; earlier this year Renault pulled out of that JV which is now being run by Mahindra.