Mahindra To Sell SsangYong For $255 Million
With a local consortium led by Edison Motors agreeing to buy the debt-ridden SsangYong Motor Company, Mahindra & Mahindra will finally be able to let go of the South Korean carmaker. SsangYong will be purchased for 305 billion won (about $254.65 million or Rs. 1,882 crore) by the electric car firm. In exchange for their investment, the consortium has requested a 95 percent share in SsangYong, according to a regulatory filing by the automaker. 75 percent of the company was owned by Mahindra.
On its part, Mahindra & Mahindra in a statement said, “We are happy to hear that Edison Motors consortium has formally agreed to acquire SYMC and that the acquisition will progress to the next stage, in a defined time frame. We will co-operate with the new investor in enabling the transition.”
The news comes as the struggling automaker attempts to find a new buyer with a negative balance sheet. In 2021, SsangYong’s sales fell by 21%, with the firm posting an operating loss of Rs. 1,473 crore on revenue of Rs. 11,140 crore. In 2021, the manufacturer’s sales totaled 84,496 units. SsangYong was acquired by Mahindra in 2010, bringing it back from the brink of bankruptcy. The business did attempt many turnaround tactics for the brand that included releasing new items as well as retailing SsangYong models in India. However, due to the automaker’s deteriorating financial situation, the Indian car giant decided to sell it.
SsangYong has been in court receivership since April of last year, when Mahindra’s attempts to find a buyer in a timely manner failed. The company has a 75% share in the South Korean company. Currently, Mahindra sells the SsangYong Rexton as the rebadged Alturas G4 SUV in India. The X100 platform, which gave birth to the Tivoli and the XUV300, was also co-developed by Mahindra and SsangYong. Currently, Edison Motors is concentrating on electric buses and commercial trucks. The corporation is trying to increase its foothold in the passenger car industry with Ssangyong.
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