Mahindra SA runs into row over SsangYong products marketing

In dispute merely 2 months after announcing it would market SsangYong's products

Barely two months after announcing that it would market SsangYong's products here, is now locked in a dispute with local company over distribution of the South Korean auto maker's vehicles.

"The previous distributor for SsangYong, (TDA), a member of the Imperial Group of companies, continues to trade and market themselves as the distributor. Mahindra SA would like to inform potential customers that the agreement between TDA & is no longer valid," (MSA) said in a statement issued on Monday.

MSA, an affiliate of Indian auto maker Mahindra and Mahindra, had said in April that it would market products here, the first country outside India, after M&M acquired a 70% stake in the Korean car maker last year.

MSA Chief Executive Ashok Thakur said his company has not only represented products in South Africa since April 1, but also in neighbouring Namibia, Botswana, Zimbabwe and Mozambique since the agreement between TDA and was no longer valid.

But TDA's lawyers have denied this claim, saying that all vehicles sold by TDA now and in the past were purchased from Motor Company as per the terms of a distribution agreement, which also gives TDA the right to sell vehicles with a valid manufacturer's warranty.

Anabela da Silva of TWB Attorneys, representing TDA, declined to comment further on the matter. He, however, indicated that the company could go to court, if necessary.

On Monday, MSA also announced 19 new dealers across South Africa for its range of products.

image
Business Standard
177 22
Business Standard

Mahindra SA runs into row over SsangYong products marketing

In dispute merely 2 months after announcing it would market SsangYong's products

Press Trust of India  |  Johannesburg 

Barely two months after announcing that it would market SsangYong's products here, is now locked in a dispute with local company over distribution of the South Korean auto maker's vehicles.

"The previous distributor for SsangYong, (TDA), a member of the Imperial Group of companies, continues to trade and market themselves as the distributor. Mahindra SA would like to inform potential customers that the agreement between TDA & is no longer valid," (MSA) said in a statement issued on Monday.



MSA, an affiliate of Indian auto maker Mahindra and Mahindra, had said in April that it would market products here, the first country outside India, after M&M acquired a 70% stake in the Korean car maker last year.

MSA Chief Executive Ashok Thakur said his company has not only represented products in South Africa since April 1, but also in neighbouring Namibia, Botswana, Zimbabwe and Mozambique since the agreement between TDA and was no longer valid.

But TDA's lawyers have denied this claim, saying that all vehicles sold by TDA now and in the past were purchased from Motor Company as per the terms of a distribution agreement, which also gives TDA the right to sell vehicles with a valid manufacturer's warranty.

Anabela da Silva of TWB Attorneys, representing TDA, declined to comment further on the matter. He, however, indicated that the company could go to court, if necessary.

On Monday, MSA also announced 19 new dealers across South Africa for its range of products.

RECOMMENDED FOR YOU

Mahindra SA runs into row over SsangYong products marketing

In dispute merely 2 months after announcing it would market SsangYong's products

Barely two months after announcing that it would market SsangYong's products here, Mahindra South Africa is now locked in a dispute with local company Twin Dragons Automotive over distribution of the South Korean auto maker's vehicles.

Barely two months after announcing that it would market SsangYong's products here, is now locked in a dispute with local company over distribution of the South Korean auto maker's vehicles.

"The previous distributor for SsangYong, (TDA), a member of the Imperial Group of companies, continues to trade and market themselves as the distributor. Mahindra SA would like to inform potential customers that the agreement between TDA & is no longer valid," (MSA) said in a statement issued on Monday.

MSA, an affiliate of Indian auto maker Mahindra and Mahindra, had said in April that it would market products here, the first country outside India, after M&M acquired a 70% stake in the Korean car maker last year.

MSA Chief Executive Ashok Thakur said his company has not only represented products in South Africa since April 1, but also in neighbouring Namibia, Botswana, Zimbabwe and Mozambique since the agreement between TDA and was no longer valid.

But TDA's lawyers have denied this claim, saying that all vehicles sold by TDA now and in the past were purchased from Motor Company as per the terms of a distribution agreement, which also gives TDA the right to sell vehicles with a valid manufacturer's warranty.

Anabela da Silva of TWB Attorneys, representing TDA, declined to comment further on the matter. He, however, indicated that the company could go to court, if necessary.

On Monday, MSA also announced 19 new dealers across South Africa for its range of products.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard