Mahindra is set to take a controlling stake in Ssangyong, which was put into receivership in January 2009, by November for an undisclosed amount. Under preferred bidder status the Indian carmaker would enter into a Memorandum of Understanding with SYMC, followed by a detailed due diligence process.

'I think what this deal does for us is provide us with a tremendous opportunity to accelerate our progress towards our stated intention of becoming a globally recognised player in the specific niche of utility vehicles,' said Mahindra & Mahindra (M&M) vice chairman and managing director Anand Mahindra.

Mahindra said that it intended that Ssangyong would continue to function as an independent entity with Korean management. It added that it would use Ssangyong's product portfolio to gain momentum in global markets.

Established in 1962, Ssangyong has more than 1,200 dealers globally and offers seven models under five brands, including two large sized sedans, four SUVs and one MPV.

In a statement, Mahindra said: 'There are strong complementarities between the SYMC and Mahindra portfolio of products, providing an opportunity to create distinct positioning. The wide sales and distribution networks and complementary product lines will provide access to many overseas markets for both companies. There is also an opportunity to introduce a premium portfolio of SUVs in the Indian market, providing a new growth avenue for Ssangyong and further strengthening Mahindra’s dominant position.'