Japan's Nissan Motor Co. said Monday it has decided to cancel its plan to invest up to 600 million euros in an electric vehicle company of France's Renault SA, its capital alliance partner.

Nissan and Renault also agreed to review their capital agreement signed in July 2023, granting them the right to reduce each other's shareholding to 10 pct from 15 pct.

While canceling the investment in the EV company, called Ampere, Nissan will entrust the production of EVs based on a small car of Renault to the Renault group.

Renault holds a stake of about 35 pct in Nissan, including a portion entrusted to a trust company, while Nissan owns a stake of 15 pct in the French company.

The review is aimed at giving each other more flexibility and is not intended to help Nissan raise funds through the sale of Renault shares, according to the Japanese company.