Coronavirus pandemic: Mahindra could halt investment plan in SsangYong brand

- The decision comes as an effort to save cash during the Coronavirus crisis

- Had plans of investing 423 million USD to turnaround SsangYong Motor

Mahindra and Mahindra could stop investment in the SsangYong Motor Company in an effort to save capital amidst the Coronavirus outbreak. The carmaker has asked the Korean brand to look for other means of funding to continue operations. This decision comes just two months after Mahindra had announced an investment of 423 million USD to turnaround SsangYong Motor and make it profitable by 2022.

Mahindra owns 74.65 per cent stake in the SsangYong brand after it saved the Korean carmaker from liquidation in 2010. The decision to stop further investment is a result of Mahindra’s sales plummeting by 88 per cent in March owing to the ongoing pandemic. However, Mahindra would consider a special one-time infusion of up to 40 billion Korean won (32.34 million USD) over the next three months to help SsangYong continue running its business while it finds other sources of funding.

Meanwhile, in India, Mahindra has already come up with new initiatives to curb the spread of the Coronavirus pandemic in the country. Their Pithampur plant in Madhya Pradesh has started assembling face shields in addition to the face shields that the company started making last month at its Kandivli factory in Maharashtra. The new shields will be supplied to medical representatives and responders who are out there combating the spread of this pandemic. The factory in MP is also serving over 1,000 meals from its kitchen. The carmaker also developed an automated low-cost ventilator prototype within two days. Meanwhile, Mahindra resorts across the country are also being offered as medical care facilities.

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