Mahindra acquired SsangYong in 2010 and held a 75 percent stake in the South Korean company
Mahindra & Mahindra will finally leave debt-ridden SsangYong Motor Company as a local consortium led by Edison Motors has agreed to acquire the South Korean carmaker. The electric car company will acquire SsangYong for 305 billion won (about $254.65 million or ₹1,882 crore). The automaker said in a regulatory filing that the consortium has sought a 95 per cent stake in Ssangyong against its investment. Mahindra held 75 per cent stake in the company.
The announcement comes amid the ailing automaker’s struggles to find a new buyer that has red paint on its laser. SsangYong sales declined 21 per cent in 2021, with the company posting an operating loss of ₹1,473 crore from revenue of ₹11,140 crore. The manufacturer’s sales stood at 84,496 units in 2021.
Read also: Mahindra to sell Ssangyong to Edison Motors: Report
The Tivoli was built on the X100 platform co-developed by Mahindra and SsangYong. It also spawned the XUV300 for India
Mahindra originally acquired SsangYong in 2010 and brought it back from near bankruptcy at the time. The company attempted several turnaround strategies for the brand which included new products as well as retailing SsangYong models in India. However, the automaker’s deteriorating financial health prompted the Indian auto giant to finally walk out of the company.
On its part, Mahindra & Mahindra said in a statement, “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 also: Mahindra expects exit from SsangYong to narrow global trade deficit
Mahindra first announced its decision to stop fresh investments in SsangYong in FY2020
After several attempts by Mahindra to secure the buyer in time failed, SsangYong has been under court receivership since April last year. The company holds a 75 percent stake in the South Korean firm. Currently, Mahindra sells the SsangYong Rexton as the rebadged Alturas G4 SUV in India. Mahindra and SsangYong also co-developed the X100 platform, which gave rise to products such as the Tivoli and XUV300.
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Edison Motors currently focuses on electric buses and commercial trucks. With Ssangyong, the company is looking to expand its presence in the passenger car market.
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