In a move that can have lasting impact on the auto industry of India, if the deal goes through, the Board of Mahindra & Mahindra Ltd has given approval for binding for Ssangyong Motors Co. Ltd.

The decision was eagerly awaited and now India's largest tractor manufacturer is going to bid for buying majority stake in the Korean automaker.

This information was given in the filing submitted by Mahindra to the Bombay Stock Exchange.

The South Korean automaker, Ssangyaong is currently under bankruptcy protection and is waiting for someone to buy stake so that it can pay back its debts.

That is the reason why it has delayed the deadline for submitting final bids. From July 20, it has now been shifted to August 10. This is being done so that the bidders have ample time to go for due diligence.

If Mahindra wins the bet then it will have access to the technology of the Korean automakers and will also have access to its export markets. It will also be tapping the overseas markets while sufficing the demand for its own products in India.