Mahindra has terminated the deal to sell Ssangyong Motor to Edison Motors. Mahindra has said that Edison Motors failed to deposit the bid amount decided upon to buy out Ssangyong and hence the deal has now been called off.
Ssangyong Motor is a Korean automotive brand that has made some brilliant passenger vehicles in the past. It is the fifth-largest car manufacturer in South Korea and was thought to be doing pretty well until the company filed for bankruptcy. Mahindra stepped in and acquired a majority stake in Ssangyong back in 2010.
Things were definitely looking up for the Koran brand. We in India too got to sample Ssangyong’s engineering. The first Ssangyong vehicle to be launched in India was the Rexton. Though it didn’t sell in large numbers, it is a sturdy SUV that owners still swear by.
In-fact, the Mahindra Alturas G4 currently being sold in India is based on the latest-gen Ssangyong Rexton. The Mahindra XUV300 is also based on the Ssangyong Tivoli. Mahindra then is tied to Ssangyong in more ways than one.
However, Mahindra stopped investing in Ssangyong back in 2020 and the brand soon started reeling under immense financial loss. In 2021, Ssangyong was placed under court receivership and Mahindra was out looking for a buyer.
In January 2022, news of Ssangyong being sold broke out. Reports had revealed that Mahindra has sold Ssangyong to a consortium of buyers led by Edison Motors for 305 Billion Won (Rs 1,885 crore). Now, it has been revealed that Edison Motors has expressed the inability to deposit the amount it had bid for.
As a result, the deal to sell Ssangyong Motor to the consortium has now been called off. Mahindra might once again be on the lookout for a potential buyer. At the moment, there’s no word on who else might be interested in purchasing Ssangyong.
Edison Motors did seem like the perfect buyer to take Ssangyong off Mahindra’s hands. Edison is a Korean electric vehicle manufacturer that is majorly into manufacturing electric buses and trucks. The brand had big plans for Ssangyong after the takeover and planned to introduce Ssangyong in new markets as well. However, some things, as it turns out, are not meant to be.
Mahindra on the other hand is probably at its very best yet when it comes to its products and engineering prowess. Waiting periods for the Mahindra Thar go up to five months while the waiting period for the XUV700 has crossed a year.
Thoughts On Mahindra Canceling Ssangyong Motor Sale Deal
Mahindra isn’t exactly in dire need of funds. However, a sale can’t be made if there’s no exchange of money and that is exactly what has happened in this case. It remains to be seen what will happen of Ssangyong and of the 75+ percent stake Mahindra has in the brand.
Keyword: Mahindra Terminates Ssangyong Sale Deal: Edison Motors Expresses Inability To Deposit Bid Amount