Mahindra South Africa (MSA), a division of Indian auto major Mahindra & Mahindra (M&M), is feuding with regional company Twin Dragons Automotive regarding the distribution of the SsangYong vehicles. Mahindra had announced the launch of its SsangYong products in South Africa in April 2012. South Africa will be the first country after India where M&M will market products on its own.
According to a press released by MSA, "The previous distributor for SsangYong, Twin Dragons Automotive (TDA), a member of the Imperial Group of companies, continues to trade and market itself as the SsangYong distributor. Mahindra SA would like to inform potential SsangYong customers that the agreement between TDA & SsangYong is no longer valid."
In 2011, M&M acquired a majority 70 per cent stake in the South Korean brand. According to Ashok Thakur, Chief Executive Officer (CEO), MSA, the company has been representing the SsangYong vehicles in South Africa, Namibia, Botswana, Zimbabwe and Mozambique since April 1, 2012. This was after TDA and SsangYong revoked their agreement.
However, the claim has been rubbished by the TDA's lawyers. According to them the vehicles sold by TDA at present and in the past have been purchased by the company as per the terms of agreement signed between SsanYyong and TDA. The agreement also entitles the latter to sell the vehicles with a valid manufacturer's warranty.
Representing TDA, Anabela Da Silva, TWB Attorney's, did not comment any further on the issue and hinted that, if necessary, the company may resort to court. On June 18, 2012, 19 dealers across South Africa were announced by MSA for its Ssangyong range.
