Auto major Mahindra & Mahindra expects its South Korean arm SsangYong to achieve sales growth of 5-8 per cent during the current fiscal.
SsangYong Motor Co (SMC), which sold about 1.4 lakh vehicles during 2014, is banking on its domestic market and Western Europe to compensate for decline at two major markets of China and Russia.
"The volume (for Ssangyong) we expect to grow may be 5 to 8 per cent this year. So that is the kind of performance we should see this year," Mahindra & Mahindra Executive Director Pawan Goenka told PTI on the sidelines of launching of new mini-truck 'Jeeto' here.
Explaining how the company has been performing, he said: "The domestic market is doing very well for us. We have had our highest market share in Korea in the last two months."
Goenka further said: "The Western Europe market is doing very well for us where we are getting 25 to 30 per cent growth there and that is balancing to some extent to Russia and China slowdown."
Replying to a question by when the Korean subsidiary would make financial turnaround, he declined to comment.
"I cannot tell you this when the financial turnaround will happen. Volumes are growing. We have launched (SUV) Tivoli also. That is the most successful vehicle. That is also very encouraging. Business performance is growing. We are very happy to see what is happening. It is going on as per the plan," he said.
In 2011, M&M had completed acquisition a 70 per cent stake in SMC, for which it has shelled out USD 463 million (about Rs 2,105 crore).
SsangYong's global sales in 2014 stood at 141,047, including 69,036 units in domestic sales and 72,011 in exports.
On the new product 'Jeeto', Goenka said a passenger vehicle on this platform would be launched during next year.
M&M invested around Rs 300 crore on the plant and product development of the new mini truck.
