Mahindra has confirmed that it’s seeking investors for SsangYong. Mahindra & Mahindra had completed the acquisition of SsangYong Motor Company in February 2011 for $463 million.
Four years later, the new Tivoli was introduced and within a year of its debut, Mahindra managed to turn SsangYong into a profitable company for the first time in nine years. The continued success of new products helped SsangYong to post record sales in 2017. Both the brands began working together in various fields and resultantly the XUV300 compact SUV based on SsangYong Tivoli’s X100 platform and the Alturas G4 emerged as the rebadged version of Rexton G4.
Mahindra increased the stakes in SsangYong from 72.46 per cent to around 74.65 per cent through additional subscription of shares last year.
There were speculations surrounding a new sub-brand under SsangYong for producing high-performance EVs in South Korea, and other projects involving electrification over the last few years as well.
The homegrown UV specialist is said to be giving up on loss makers such as the America-based electric bike brand known as GenZe. Mahindra reported a huge loss of Rs. 2,510 crore in the March quarter due to the dire economic conditions.
While Mahindra has confirmed by its Managing Director, Pawan Goenka, to exit from electric scooter business in the US, more impact could be seen on its ownership of SsangYong. He further noted that Mahindra is “looking at potential investors” for the South Korean subsidiary.