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Mahindra-controlled sports utility vehicle maker SsangYong Motor Company is searching for a new identity because its name is considered a Chinese brand in some markets. The South Korean company, 73 per cent held by Mahindra & Mahindra, believes the rebranding exercise is essential for an international push, including an entry into the US market.
Yoo-il Lee, president and chief executive, SsangYong Motor Company, said, “We went through difficult times in the past 10 years, including court receivership. Our image in Korea tends to be negative. Also, in many international markets, customers find our name difficult to pronounce and some have misconceptions that we are a Chinese brand. So we are considering rebranding in order to establish a positive image and become a leading global SUV maker.”
SsangYong, which means double dragon, started operations in 1954 and has been rebranded twice. The company first changed its name in 1977 to Dong-A Motor. In 1986, the SsangYong group acquired Dong-A Motor, renaming it SsangYong Motor in 1988.
Having been under the ownership of SAIC, China’s largest automobile manufacturer accused of stealing technologies developed by its Korean arm, and later filing for court receivership in 2009, SsangYong’s image took a knock. Strikes plagued the company until the takeover by M&M in 2010.
The rebranding, however, is not initiated by M&M. Pawan Goenka, chairman, SsangYong Motors Company, said, “This name has been around for a while and there is a legacy that goes along with the name. The management and the employees think that a new name will be good for the company. Its not something that Mahindra is initiating.”
In addition to the proposed entry into the US market, the rebranding comes when both Mahindra and Ssangyong have started developing products, engines and transmission units that are due in the market from next year.
The first joint product, a compact SUV X100 under the SsangYong brand, will have a new engine developed by the two companies. As many as six new engines are being worked upon to be be used in M&M and SsangYong vehicles. M&M could have its own compact SUV on the X100 platform.
“We are studying the market and preparing a plan for a successful entry into the US. We plan to launch the B-segment X100 SUV in the beginning of 2015 and continue to introduce a new car every year. We will study the possibility of bringing this model to India with M&M,” Lee said.
SsangYong recorded a 20 per cent growth in sales in 2013 at 145,649 vehicles, of which 63,970 were sold locally and 81,679 exported. While Lee did not disclose the sales target for this year, he said, “We would like to continue the momentum and grow sales to a higher level.”
