Thursday, January 10, 2013
By Anil Jangid
Mahindra to invest $900 million in Ssangyong in the next four years
Korean car maker Ssangyong has really come out of slumber the day Mahindra has given it a helping hand. Now Mahindra has reportedly decided to pump in over $900 million in four years in order bring back the lost sheen to its Korean subsidiary. The investment will be channelized to development of new products besides expansion of Ssangyong’s network across the globe. In India, Mahindra will be launching more Ssangyong cars besides setting up a production base for export of Ssangyong cars. Thus Mahindra Rexton will soon be joined by Mahindra Korando and other cars from Ssangyong’s fleet of cars.
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Notably, Ssangyong has helped Mahindra in registering its presence in the luxury car segment and Mahindra Rexton has competed well with Ford Endeavour, Chevrolet and Toyota Fortuner. Besides, with Ssangyong cars in, Mahindra can concentrate on the entry level SUV segment and other segments in India. Notably, Mahindra will also be making India as a base for Ssangyong cars for exports to other destinations. Now that Ssangyong car sales have improved recently, Mahindra too is enthusiastic about it and hopes that it subsidiary will be achieving success worldwide.
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It is also reportedly known that this investment will be other than the $908 million that the car maker will be spending on the development of products in its own stable. This amount will be spent on Ssangyong cars in the next four years and experts believe that the next four years will witness maximum activity from this brand. Also, it took only less than a year for Mahindra to bring Ssangyong from loss to profits this year. It is also reportedly known that the Korean car maker will be launching new products in new destinations across the globe this year and in the next four years. Meanwhile, India will see new products from Ssangyong’s fleet thus giving a tough fight to the big wigs that are already enjoying their tenure in the country.