Mahindra Production & Mahindra Ltd. SUV in Maharashtra, India.
Photographer: Udit Kulshrestha / Bloomberg
Photographer: Udit Kulshrestha / Bloomberg
Mahindra & Mahindra Limited is in talks with an investor for a wholesale sale Ssangyong Motor Co. as the largest SUV manufacturer in India is rethinking its investments amidst the pandemic.
Mahindra will retain 30% or less in Ssangyong if the deal goes through and will also make a 25% capital reduction, Pawan Goenka, managing director of the Indian automaker said at a preparatory meeting on Friday. He plans to sign the term page next week and will conclude the transaction by Feb. 28, he said. The company had 70% bought bets in Ssangyong for $ 368 million in 2010.
“Things have changed a lot in the last 12-15 months,” Goenka said. With the kind of change that is happening in the business environment and automation industry, we again need to prioritize where we put our money and where we put pressure. ”
A widespread fall in consumer demand across India has hit automotive companies particularly hard as the economy arrives under recession. Mahindra has been the company’s worst hit they reported their first quarterly loss in nearly two decades last year.
Mahindra withdrew from a joint venture proposed by Ford Motor Co. in India as the capital requirements did not make sense at a time when the pandemic has reduced consumer demand.
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“The world was turned upside down by Covid’s pandemic,” Goenka said. “Having worked on this JV for over 2 years it was not an easy decision but both companies were clear that the current situation is the best decision. be wise and move on. ”
Mahindra and Ford will continue to look at opportunities for involvement, Goenka said, adding that Mahindra could cancel or add projects with Ford after they have been reviewed.
The automaker will focus on building a robust SUV package based on electric vehicles and will not try to build an international presence in the short term, according to the company’s CEO Rajesh Jejurikar.
– Supported by PR Sanjai