Sunday's German Moto3 Grand Prix was the last for Marcel Schrotter as a Mahindra rider.
Schrotter took the underpowered Mahindra's only points of the year to date with twelfth in the wet a Le Mans.
“I am sad to leave, but at 19 it is difficult for me to help develop the bike and I'm looking for a new target. Good luck to Mahindra,” said Schrotter.
The German will be replaced by 27-year-old Italian Riccardo Moretti, currently running second in the Italian national 125 championship on a two-stroke Mahindra.
“We would like to thank Marcel for his contribution during the last two years,” commented Mahindra Racing CEO Mufaddal Choonia. “He is a very talented rider. We part on good terms and he goes with our best wishes and a hope that we may work together again in the future.
“We have made an application for Riccardo Moretti to take over from the next race this weekend at Mugello. Riccardo rides for us in the Italian Championship, has grand prix experience and is well placed to help develop our bike.”
Englishman Danny Webb will remain with the team.
Despite the ongoing technical troubles, Mahindra has pledged to stick with its independent Moto3 design for the rest of the season.