India Mahindra Considering Giving Up Control of Ssangyong Motor

[Asia Economy Reporter Park Jihwan] According to foreign media reports, Mahindra & Mahindra, the major shareholder of Ssangyong Motor, is considering relinquishing control of Ssangyong Motor as a measure to recover from the shock of the COVID-19 pandemic.

On the 13th, according to major foreign media, Pawan Goenka, Chairman of the Ssangyong Motor board and Mahindra, told reporters the day before, "Ssangyong Motor needs new investors," and "We are exploring whether we can secure investors."

Anish Shah, Vice President of Mahindra, said, "If a new investor for Ssangyong Motor emerges, they can automatically acquire or purchase our shares," adding, "Amid the impact of COVID-19, we will review all loss-making businesses over the next 12 months as part of a broad restructuring effort to reduce costs and improve capital expenditure efficiency."

Mahindra acquired Ssangyong Motor in 2011 and currently holds a 75% stake. Last April, they set a goal to return to profitability after three years and proposed an investment plan of 230 billion KRW for Ssangyong Motor, which was later withdrawn. Instead, they promised to provide only emergency funds of 40 billion KRW.

Ssangyong Motor posted a net loss of about 200 billion KRW in the first quarter of this year, marking 13 consecutive quarters of losses.

This content was produced with the assistance of AI translation services.