- 13 hrs ago TVS Jupiter 125 Vs TVS Ntorq 125: Design, Powertrain, & More
- 16 hrs ago Royal Enfield Limited Edition Helmet Reviewed: Is It The Best-Looking Half-Face Helmet?
- 1 day ago Toyota Land Cruiser India Launch Delayed: 4 Year Waiting Period
- 1 day ago Kawasaki Z650RS 50th Anniversary Edition Will Soon Come To India: No Mechanical Updates
- Sports ISL: ATKMB vs OFC, Highlights: ATK Mohun Bagan and Odisha entertain but fail to score
- Movies Saani Kaayidham: The Keerthy Suresh-Selvaraghavan Starrer To Release On Amazon Prime Video
- News Kerala, Tamil Nadu oppose proposal to tweak IAS rules, ask PM Modi to drop move
- Education National Girl Child Day: History, Significance And Essay On Rashtriya Balika Diwas For Students
- Finance Single Volume Economic Survey Likely, May Project Growth Rate of Around 9 Per Cent
- Lifestyle 60% COVID Deaths In 'Third Wave' Among Partially Or Completely Unvaccinated: Max Study
- Technology Airtel, Jio, Vi ‘Work From Home’ Prepaid Plans Under Rs. 300
- Travel Amazing Places To Visit In North India In Winter Of 2022
Ssangyong Motor has been bought by a group of companies for 305 Billion Won (Rs 1,885 Crore). This was a long-pending transaction as the South Korean car manufacturer has been in debt for a while now and vehicle sales have dropped for Ssangyong.
In India, Ssangyong is known as the brand that Mahindra acquired a majority stake in. Many would remember the Ssangyong Rexton that Mahindra retailed in India. The Rexton wasn't anywhere close to being called a sales success, but it definitely was a solid SUV and many who bought it, still swear by it.
The Mahindra Alturas G4 that is currently on sale in India is based on the latest generation Ssangyong Rexton. The Mahindra XUV300 which is loved by many is based on the Ssangyong Tivoli. Ssangyong then has been an influential brand in India. Well, sort of.
In South Korea though, Ssangyong is big business. It is one of the largest automobile manufacturers in a market that is said to be the fifth-largest producer of automobiles. However, in recent times, sales of Ssangyong cars dropped drastically and revenue, in turn, plummeted.
In 2021, Ssangyong sold just 84,496 cars which is 21 percent lower than the previous year's sales. Adding to this are the losses the brand faced. Ssangyong reported an operating loss of around Rs 238 Billion Won between January and September 2021 even though revenue was 1.8 Trillion Won for the same period.
Indian auto giant Mahindra had bought a majority stake in Ssangyong back in 2010 knowing that the Korean brand was almost bankrupt. Mahindra hoped to turn things around for the brand and was looking to make a full recovery. However, things didn't really work out for Ssangyong as the brand was a sales disaster in the Indian market.
At the end of September 2021, Mahindra owned 75 percent stake in Ssangyong even though it had placed Ssangyong under court receivership in April 2021. In October 2021, it was reported that Edison Motors would take over Ssangyong.
Now, the deal has finally gone through and a group of companies — a consortium formed by Edison Motors has bought Ssangyong, therefore removing it from court receivership. Edison Motors is a Korean electric bus and truck manufacturer, and plans to rehabilitate Ssangyong by launching the brand in more markets including the Americas and Mexico.
Thoughts On Ssangyong Being Bought For 305 Billion Won
Ssangyong has in the past made some brilliant cars. The Tivoli on which the Mahindra XUV300 is based, The Rexton, and the Korando are perfect examples of some good Ssangyong engineering. However, it does seem like all is not well at the business end of things, and under its new owners, Ssangyong will continue to work against all odds in order to turn a profit.