Latest Car News in India

Monday, February 06, 2012

By Manoj Kumawat

Ssangyong Korando and Rexton SUVs to be produced locally in near future

India certainly is on the verge of being a hub for domestic and international car makers. With most of the international big German brands such as BMW, Audi, Volkswagen and Japanese Toyota, Honda besides others already in, there are some more who want to make India their car production base. South Korean automobile manufacturer and Mahindra owned Ssangyong Motor wishes to establish a production unit in India. Notably, Mahindra will be launching Ssangyong Mahindra Korando and Ssangyong Mahindra Rexton this Diwali taking the completely built unit route. Later, after sensing the response in India, Mahindra could consider producing these SUVs in India. Majorly, low cost production due to easy availability of cheap labor is what attracts car makers to pitch in their plants in India.  

Mahindra Korando Pictures

See More Mahindra Korando Photos Get Mahindra Korando Price


Ssangyong Motors consideration for India came after a senior official of the company has reportedly expressed his wish in this regard. As per sources, the company will be spending $1.2 billion from this year to 2017 and probably will be launching more of its cars in India. Where a dedicated plant in India will mean greater supply, it will also ensure that Ssangyong Korando and Ssangyong Rexton take a lower price tag due to greater localization in future. Besides compared to India, producing cars in Korea is costly, said sources.

Mahindra Rexton Pictures

See More Mahindra Rexton Photos Get Mahindra Rexton Price


Presently, car makers such as Hyundai, Maruti Suzuki have made India their production base and are exporting their cars in other countries from India. Why foreign car makers are attracted towards establishing their plant in the country is cheap and easy availability of labor besides a favorable policies in certain states such as Gujarat. Following these factors, where Maruti has intended to have a new plant in Mehsana (Gujarat), Ford, GM and others have also pitched in their tents in the state. Notably Tata Nano is already produced at a Sanand plant.

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