Mahindra & Mahindra plans to tie-up with a Chinese company to manufacture Ssangyong vehicles for the China market.
Pawan Goenka, executive director, Mahindra & Mahindra, told a news agency that making Ssangyong cars in China would ensure that it could sell vehicles competitively there.
M&M acquired an over 70 per cent stake in Korean auto major Ssangyong in 2011. However, the Indian major has not been able to turn it around and Ssangyong continues to report losses.
Earlier, Mahindra had plans to launch Ssangyong in the US market, but has now changed its strategy to focus on China. At present, Korean manufactured models are sold through a distributor in China.
Ssangyong is also witnessing declining sales in Russia, which was once a major market for it. The Korean carmaker sold about 145,000 units in 2015, slightly higher than 141,000 a year earlier. However, exports accounted for just a third of its sales in 2015, as against more than half in 2014.
Mahindra & Mahindra is investing almost a billion dollars to boost Ssangyong's product lineup. Its new compact, SUV, Tivoli - which has done well in South Korea - could be launched in China.
Source : BS Motoring