A decade after its purchase, Mahindra & Mahindra is about to sell South Korean sport-utility vehicle (SUV) maker Ssangyong to electric vehicle startup Edison Motors, as reported by Nikkei. The outlines of any such deal remain hazy, but the 2011 buyout looked like a heavy-handed trailer for the Indian auto major, and so it will come as no surprise.
Ssangyong’s performance has been so bad that it is on the verge of bankruptcy. Mahindra’s revival efforts were unable to leave it behind Korean rivals such as Hyundai and Kia. In India, some SsangYong vehicles were sold under the Mahindra badge. Experiments such as the Rexton and Alturas models of link-up did not go away. Since the Korean brand had little appeal in our market, many analysts see the absorption of the technology as the key motivation for Mahindra’s acquisition. Now with an electrical transition, its relevance has faded. If its Korean business gets sold, Mahindra will be able to cut losses on it and focus on its domestic market. Its recently launched XUV700 SUV has got tremendous bookings, but its electric moves are being watched by investors.
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