MUMBAI (Reuters) - Mahindra & Mahindra MAHM.BO, India's top utility vehicle and tractor maker, on Saturday said it had submitted a letter of intent to make a bid for troubled Korean SUV maker Ssangyong Motor, but declined to comment on how much it was willing to pay.

Seven foreign and South Korean companies have submitted letters of intent for Ssangyong 003620.KS, 10 percent owned by China's SAIC Motor Corp 600104.SS, Ssangyong said on Friday.

“We have submitted an expression of interest for Ssangyong. If we are one of the companies shortlisted, then we will undertake a due diligence,” Pawan Goenka, president of Mahindra’s automotive sector told reporters.

“We have to look at the economic viability of the company and how it fits into our strategy before we make a bid,” Goenka said.

When asked to put a value to the deal, he said Mahindra had just expressed an intent to make a bid for Ssangyong. “Just because we have expressed an interest does not mean we will finally make a bid,” Goenka said.

“We will do it only if it makes economic sense,” said Bharat Doshi, Mahindra’s group chief financial officer.

Goenka said Mahindra would have to examine the reasons why Ssangyong sales have fallen and “whether they can be fixed.”

“We have an expertise in utility vehicles and that should help us in this,” Goenka said.

South Korean media put the deal at $300 million-$500 million, but analysts said Mahindra was more likely to bid in the range of $100 million to $300 million to recapitalize Ssangyong, which was forced to undergo a capital writedown last year.

ACQUIRING SPREE

Mahindra has been on an acquisition spree lately as it seeks to expand its portfolio. In April, it said it was buying out Renault’s stake in a joint venture making Logan sedans in India, its first entry into the passenger car segment.

Earlier this week, it bought a majority stake in the maker of electrical cars Reva Electric Car Company for an undisclosed sum, giving it a foothold in the small but growing electric vehicles industry which is attracting global majors such as General Motors GM.UL and Toyota 7203.T.

Mahindra reported a 36.4 percent rise in net profit for March quarter to 5.7 billion rupees ($123 million), beating market forecasts of 4.7 billion rupees, on robust sales of utility vehicles and tractors.

Net sales rose to 52.8 billion rupees, a jump of 45.9 percent over the corresponding quarter in the previous year.

Rise in raw material prices and expected increase in interest rates would be the challenges for the company in the current financial year, Goenka said.

“Raw material prices are almost as high as they were in August 2008. The first six months... we expect that they will go up and then come down in the second half,” Goenka said.

For the next three years, the company will be spending 45 billion rupees, of which 75 percent will be for the automotive sector.

The company is also all set to launch a pick-up truck in the U.S. toward the end of this year, after getting regulatory approvals expected in July.

Shares in Mahindra, valued at nearly $7 billion, have risen less than 1 percent so far this year, compared to the main index .BSESN which has fallen 3.4 percent.

($1 = 46.4 rupees)