Auto company Mahindra & Mahindra (M&M) is banking on new automotive products, including from Ssangyong stable to tide over low growth in the sector in the current fiscal.
"We will launch five new products that include a new SUV [from Mahindra], a new electric car [Reva] and Korando C Rexton from Ssangyong during the year and we expect to do well from these launches," M&M president (automotive) Pawan Goenka said here today.
There was, however, no projection on the total units to be sold this year. The automotive industry rose 27% in FY 2011 but had expanded by just 10% in the month of April and May of the current fiscal.
M&M which took over Korean ailing automaker Ssangyong for $480 million last year and has started using its inputs for its new products. Ssangyong will jointly develop all future automotive products with Mahindra.
"The SUV code named W201 was complete before the acquisition but even then we had taken Ssangyong engineer's inputs and we also plan to send a car to Korea for their suggestions," Goenka said.
Goenka said the company had not yet decided on selling Ssangyong SUVs through Mahindra dealership or create a fresh line of dealership for the Korean products, which would be placed in premium category and would be imported in CKD form and assembled in the country to keep import duty at 10%.
"We have also not yet finalised whether Mahindra tag will be used in the Ssangyong products to be sold in India," he said.
Goenka said Ssangyong will do better this year with a topline of $3 billion and but will not be able to break even.
Asked about plans for selling Mahindra products through Ssangyong network, Goenka said some talks had been initiated only for the Africa market.
