M&M’s South Korean Subsidiary SsangYong’s Resolution In Sight: Motilal Oswal 
A Ssangyong Motor Co. badge sits on the front grille of the company’s Tivoli crossover utility vehicle (Photographer: SeongJoon Cho/Bloomberg)

M&M’s South Korean Subsidiary SsangYong’s Resolution In Sight: Motilal Oswal 

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Motilal Oswal Report

Mahindra and Mahindra Ltd.’s management hosted a concall to update on Ssangyong Motor Co., its decision to not pursue the Ford joint venture further, and supply-side issues impacting the auto business.

The Ssangyong resolution seems near as there is a court deadline (of February 2021) to get a buyer or proceed with bankruptcy.

The decision to not go ahead with the Ford JV has been a surprise as there were credible synergies that were visible.

However, the management indicated that the increased investment requirement made this JV a less attractive proposition.

Both these decisions signal seriousness of its intent to correct capital allocation even within the auto business.

Click on the attachment to read the full report:

Motilal Oswal Mahindra & Mahindra Company Update.pdf

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