Indian SUV maker Mahindra & Mahindra has been named as Ssangyong's preferred bidder

Indian SUV maker Mahindra & Mahindra has been named as the preferred bidder for struggling South Korean manufacturer Ssangyong.

Ssangyong is currently being restructured under court guidance after raking up debts of $634 million (£400m). Last year its workforce staged violent strikes, causing the delay of the firm’s flagship model, the C200. It has still not been launched a year on.

Read more on the troubles that plagued Ssangyong last year, plus more on the C200

Mahindra’s intended purchase of Ssangyong would give it access to the South East Asia market where it currently has no presence and also new technologies, including diesel engines. Mahindra also has a good record of sorting out industrial disputes.

It is believed to have bid around $400m (£250m) for Ssangyong, which has a two per cent market share in its domestic market. Mahindra shares dropped one per cent on the news that it had been named as the preferred bidder, but industry analysts told Auto News that the purchase will have benefits for the Indian firm in the future.

“The acquisition could be slightly negative for Mahindra in the near term because Ssangyong is a small player and scalability is limited. So Mahindra will have to make some investments," said an analayst from Prabhudas Lilladher. "I am guessing it would take two to three years for Mahindra to turn around the company. That is when we expect the benefits to kick in.”

See all the latest Ssangyong reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • 2016 Audi A3 Sportback e-tron UK review
    First Drive
    29 September 2016
    First UK drive finds the facelifted A3 Sportback e-tron remains a first-rate plug-in hybrid that is packed with tech if a little short on driver appeal
  • Citroen C11.2 Puretech 82 Furio
    First Drive
    29 September 2016
    Citroën's city car gets a new sporty-looking trim level, adding visual adornments, but no premium for the 1.2-litre Puretech triple we're driving
  • Mercedes C350e Sport
    First Drive
    28 September 2016
    Petrol-electric C-Class is a surprisingly well-priced alternative to a diesel but not the greatest example of the new ‘PHEV’ breed
  • Car review
    23 September 2016
    Aston kicks off its ‘second century plan’ with an all-new turbo V12 grand tourer
  • Ford Ka+ 1.2 Ti-VCT 85
    First Drive
    22 September 2016
    A rounded, refined and well-sorted bargain supermini – once you’re used to the confusing role redefinition imposed on the once-cheeky Ka