see imagesMahindra acquired SsangYong in 2010 and held a 75 p.c stake within the South Korean firm
Mahindra & Mahindra will lastly depart debt-ridden SsangYong Motor Company as a neighborhood consortium led by Edison Motors has agreed to amass the South Korean carmaker. The electrical automotive firm will purchase SsangYong for 305 billion received (about $254.65 million or ₹1,882 crore). The automaker stated in a regulatory submitting that the consortium has sought a 95 per cent stake in Ssangyong in opposition to its funding. Mahindra had a 75 per cent stake in SsangYong.
The announcement comes amid the ailing automaker’s struggles to discover a new purchaser that has pink paint on its laser. SsangYong gross sales declined 21 per cent in 2021, with the corporate posting an working lack of ₹1,473 crore from income of ₹11,140 crore. The producer’s gross sales stood at 84,496 items in 2021.
Read additionally: Mahindra to promote Ssangyong to Edison Motors: Report
The Tivoli was constructed on the X100 platform co-developed by Mahindra and SsangYong. It additionally spawned the XUV300 for India
Mahindra initially acquired SsangYong in 2010 and introduced it again from close to chapter on the time. The firm tried a number of turnaround methods for the model which included new merchandise in addition to retailing SsangYong fashions in India. However, the automaker’s deteriorating monetary well being prompted the Indian auto big to lastly stroll out of the corporate.
On its half, Mahindra & Mahindra stated in a press release, “We are pleased to hear that the Edison Motors Consortium has formally agreed to acquire SYMC and that the acquisition will proceed to the next phase in a specified time frame. We will cooperate with the new investor in enabling the transition.”
Read additionally: Mahindra expects exit from SsangYong to slim world commerce deficit
Mahindra first introduced its resolution to cease recent investments in SsangYong in FY2020
After a number of makes an attempt by Mahindra to safe the customer failed, SsangYong has been below courtroom receivership since April final 12 months. Currently, Mahindra retails the SsangYong Rexton in India which has been rebadged because the Alturas G4 SUV. Mahindra and SsangYong additionally co-developed the X100 platform, which gave rise to merchandise such because the Tivoli and XUV300.
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Edison Motors at the moment focuses on electrical buses and industrial vehicles. With Ssangyong, the corporate is seeking to develop its presence within the passenger automotive market.
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With inputs from NDTV
