Tuesday, February 21, 2012
By Manoj Kumawat
Mahindra interested to assemble its vehicles in Russia
India’s renowned automaker, Mahindra & Mahindra (M&M) has confirmed that the company is interested to establish its assembly line in Russia through negotiating with its South Korean subsidiary distributor SsangYong in the next two years.
The President (Automotive and Farm Equipment Sectors) of Mahindra & Mahindra, Pawan Goenka has admitted that the discussions are at their initial stage with its Russian distributor of SsangYong for assembling Mahindra vehicles. It is still to be decided that what products that will be. The SsangYong with its distributor Solaris has already assembled the semi-knocked down units in Russia.
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The entire assembling project will take around two years, he added further. Goenka also said that company also planning to increase the production capacity of the most popular SUV (Sport Utility Vehicle), Mahindra XUV500 upto 5, 000 units per month for the Indian market. Currently, the XUV500 production capacity is 3000 units and M&M expecting to make it around 4000 units by the end of May 2012. Company has decelerated the launch of its vehicles in overseas markets to cater the constantly increasing demand in India.
He also addressed that with the launch of Mahindra XUV500 company is all prepared to mark its presence in international markets like Australia. But, by considering the domestic demand company has decided to slow down the launch.
According to the Goenka statements, the Mahindra XUV500 along with the shipping of 400 vehicles company meeting the demand of its South African buyers, around 100 units per month. The new SsangYong’s SUV Rexton is expected to launch in India during the festive season of Diwali 2012. The upcoming SUV Rexton will be manufactured at the Chakan plant of the company in Maharashtra.