Thursday, January 20, 2022

Mahindra got a setback, it failed in this case, this company had to be sold

Giving information on Monday, South Korea’s SsangYong Motor Company said that a local consortium has acquired them for 305 billion won, or about $ 254.56 million. The company was under court receivership for several months after its majority shareholder Mahindra failed to find a new buyer for SsangTong Motor.

SsangYong Motor has had a very bad time and the company has suffered losses many times. Mahindra & Mahindra acquired a controlling stake in the South Korean company in 2010 and it was expected that manufacturing the SUV body type would help it regain its market share.

Mahindra chose not to invest any more money in it in April 2020 and started looking for a buyer for it. Sangyang Motor had informed that the company has a debt of about Rs 408 crore which it has not been able to repay. According to SsangYang Motor, the company had a total debt of 100 billion korean won. Due to non-payment of the loan, he applied for bankruptcy.

Ssangyong Motor has had a rough time in the recent past due to the COVID-19 pandemic. Reuters reported that SsangYong Motor had reduced vehicle sales to around 84,000 in 2021, down 21 percent from the previous year. Between January and September 2021, the company suffered a loss of 238 billion won.

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