Mahindra to invest $73 million in Ssangyong to develop new cars

India's Mahindra & Mahindra will invest 80 billion won (US$73 million) in its South Korean affiliate Ssangyong Motor to develop new small crossover utility vehicle models, Ssangyong officials said.

Ssangyong's board approved plans on Feb. 14 to issue 14,545,455 new shares, which will be sold to Mahindra at 5,500 won per share. As a result, Mahindra's stake in Ssangyong will rise to 72.95 percent from 69.63 percent.

Pawan Goenka, chairman of Ssangyong's board, said: "This paid-in capital increase reflects Mahindra's strong commitment to support Ssangyong Motor in its efforts to achieve an early turnaround.

"By expanding investment in Ssangyong and creating tangible synergy in various areas such as sales, product development and sourcing, we will continue to increase our global competitiveness.”

Park Sae-jin swatchsjp@ajunews.com