Mahindra’s SsangYong To Be Acquired By A Korean EV Brand – Report

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SsangYong will reportedly be acquired for around USD 260 million (Rs. 1,946 crore approx) by a consortium led by Korea’s Edison Motors

According to a recent report that surfaced on the interweb, SsangYong Motor Company, the fourth largest South Korea based automobile firm, will be acquired by a consortium led by Edison Motors. Following the global economic crisis, Mahindra bought 70 per cent shares in SsangYong back in February 2011 with an intent to revive the fortunes of the loss-maker.

The stakes were further increased in the coming years as fresh money was pumped in. However, the Indian SUV manufacturer could not make the troubled SsangYong brand a global success despite the introduction of new products with high investments. Consequently, SsangYong filed for receivership again after defaulting on a loan payment in 2020.

With Mahindra focussing on its future lineup of products and electric mobility solutions, as many new launches have been planned over the next five years across different spectrums, it announced that no more investments would be made on SsangYong as the hunt for a suitor has been on for a long period. The report noted that the consortium will buy the company for around USD 260 million (Rs. 1,946 crore approximately) and is pending court approval.

Ssangyong Tivoli Facelift-1

The consortium led by Edison Motors is said to be the preferred bidder and if everything goes according to plan, a deal could be finalised as early as November 2021. Some reports indicate that three groups were showing interest including a consortium led by Electrical Life Business and Technology and US-based INDI EV.

However, the EL B&T was excluded by the court due to it failing to submit the required documentation. Edison Motors produces electrified buses and trucks and has ambitious plans for the future as it wants to become Apple of the EV sector. The EV startup is working on Smart series vehicles to tackle big giants like Tesla and Mercedes-Benz with a triple e-motor system.

The technology delivers 644 horsepower as the Smart S luxury vehicle is claimed to do zero to 100 kmph in under 2.5 seconds. Courtesy of a 100 kWh battery pack, it will have a range of more than 800 km. The Smart E, on the other hand, will be pitted against Merc EQE and the Smart A will compete against Chevy Bolt EV and Tesla Model S.