South Korean automaker SsangYong, bought over by India’s M&M group, has confirmed that Mahindra South Africa (MSA) is its sole distributor in South Africa and neighbouring countries, amid reports of a dispute with Twin Dragons Automotive (TDA), which previously handled the business.

“Mahindra South Africa took over responsibility for sales, service and parts supply in South Africa, Namibia, Botswana and Mozambique on April 1,” said SsangYong Motor Vice-President, Mr Choi Jong-Sik.

Mr Choi’s comments follow reports that TDA is considering legal action to continue as a distributor of SsangYong products.

“The distribution contract with the previous distributor TDA expired on March 31,” Mr Choi added.

MSA, an affiliate of Mahindra and Mahindra, made this announcement in April after M&M acquired a 70 per cent stake in the Korean car maker last year.

MSA has established a firm presence in South Africa since starting up in 2004, with sales of about 18,000 vehicles in a very competitive market. On Monday, MSA announced 19 new dealers across South Africa for the SsangYong range.

MSA said in a statement that the previous distributor for SsangYong, TDA, continues to trade and market them as the SsangYong distributor. They would like to inform potential SsangYong customers that the agreement between TDA & SsangYong is no longer valid.

MSA's Chief Executive, Mr Ashok Thakur, said that his company has not only represented SsangYong products in South Africa since April 1, but also in neighbouring Namibia, Botswana, Zimbabwe and Mozambique, since the agreement between TDA and SsangYong was no longer valid.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 SsangYong 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, had indicated that the company could go to court, if necessary.

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