Indian automobile and tractor maker Mahindra & Mahindra is in preliminary talks to buy the engine and transmission unit of Daewoo Motors India Ltd, the Bombay Stock Exchange said on Monday.
If concluded, the deal would mark a successful sale of all the main Indian assets of South Korea's bankrupt Daewoo, whose Indian arm currently has a total equity value of more than $100 million.
Just last week, General Motors Corp, the world's biggest auto-maker, said it had offered to buy Daewoo's closed Indian car assembly plant for an undisclosed amount.
A court receiver has been trying to sell all the assets in parts to repay creditors, after an offer to dispose of Daewoo India as a stand-alone business attracted no bids.
About 18 banks, led by ICICI Bank and Industrial Development Bank of India, had lent over $331 million to the carmaker.
There is already great interest in India's car market, which is growing at a torrid pace as the middle-class expands in line with the economy. Multinational car firms are also big buyers of Indian car parts, one of the country's most successful industries.
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