Mahindra to sell S. Korean SUVs in India, Africa
Friday 01 April 2011
India's Mahindra & Mahindra will sell Ssangyong Motor vehicles in markets including India and Africa in a bid to revitalise the troubled South Korean firm it bought last year, executives said Thursday.
Two sport utility vehicles, the Korando and Rexton, will be introduced to the Indian market, Mahindra Group managing director Anand Mahindra told a press conference at the Seoul Motor Show.
"Right now the (Indian) market is a very, very high-potential market for products of the kinds Ssangyong makes... people are ready to spend more for more sophisticated products," Mahindra said.
He said Mahindra, the largest SUV producer in India, also plans to use its sales network in Africa where it sold 9,500 cars last year to market Ssangyong's SUVs in "the next frontier of automobile growth".
"SUVs are perfectly suited for the terrain of Africa... the joint team of Ssangyong and Mahindra will make a strong impact," said Mahindra.
Ssangyong this month exited court-led bankruptcy protection in force since 2009, after Mahindra completed the takeover of a 70 percent stake for 522.5 billion won ($476.7 million).
The largest SUV producer in South Korea ran into trouble in 2008 as a slump in sales of SUVs dried up its cash reserves, leading to job cuts that sparked a violent strike that lasted for months.
Ssangyong said this month it would invest more than 240 billion won this year to develop new vehicles and build its brand with the new owner's backing.
The Pyeongtaek-based firm and Mahindra are working together to roll out electric cars within the next two years, company chief executive Lee Yoo-Il said.
The Indian conglomerate also plans to open a South Korean unit of its auto financing firm to help Ssangyong with the selling of their vehicles, said Ssangyong chairman Pawan Goenka.
Mahindra said his group is behind Ssangyong for the long term.
"We are proud investors of Ssangyong and we believe very firmly in Ssangyong's future," he said, when asked if his group was considering cutting its stake in the near future.
"We are committed therefore to the turnaround of the company's fortunes. This is going to be a long journey in which we intend to be long-term players."
Life & Style blogs
Jennifer Lawrence nude pictures leaked: Reddit removes 'The Fappening' board dedicated to sharing naked pictures of celebrities
iPhone 'Wave': iOS 8 hoax claims you can charge your iPhone in the microwave - you can't
From Topshop to Burberry, London Fashion Week spring/summer 2015: Distraction could not disguise a distinct lack of focus
A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
No new blood and no fresh ideas at Milan Fashion Week: How do you solve a problem like Milano?
Scottish independence referendum: A nation divided against itself
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
- 1 Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
- 2 Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
- 3 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 4 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 5 Scotland could still declare independence – even without referendum, says Alex Salmond
£85 - £125 per day: Randstad Education Chester: Job Opportunity for Secondary ...
£100 - £110 per day: Randstad Education Group: [ Megan Smith 22/09/2014 17:00:...
£100 - £140 per day: Randstad Education Birmingham: Foundation and Key Stage 1...
£100 - £110 per day: Randstad Education Group: Temporary Teacher of GEOGRAPHY ...