Mahindra & Mahindra Financial Services Ltd (MMFSL), a part of $16.2 billion Mahindra Group, is forming a joint venture with Seoul-based Woori Financial to help finance vehicles for customers of Ssangyong Motor.
Post the MOU, both Woori Financial and Mahindra Finance will work together and evaluate the feasibility of setting up a joint venture to provide appropriate financing solutions to the customers of Ssangyong vehicles. Through this alliance, Woori Financial plans to strengthen customer marketing and financial support via joint investment with Mahindra Finance, the company informed BSE.
Ssangyong Motor is majority owned by Mahindra & Mahindra Ltd (M&M), the parent company of MMFSL. M&M recently raised its holding in Ssangyong Motor to 72.85 per cent by subscribing to a fresh issue of shares.
Mahindra Group said it choose Woori Financial as a prospective partner to establish an auto-financing company in Korea since Woori Financial has a strong brand, good financial strength and a large customer base.
Woori Financial's advantages—a stable cash flow, competitive financial rate of interest and sales know-how—are expected to strengthen the JV, said the company. In addition, the two companies are expected to explore opportunities to work jointly.
Mahindra Finance is one of India's largest rural finance company and manages assets of around $5 billion. The company has a joint venture in the US with De Lage Landen Financial Services Inc., a Rabo Bank subsidiary, to finance Mahindra tractors.
The non-banking finance company with a pan India presence focuses on the rural and semi-urban sector and provides finance for vehicles and tractors.
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