Ssangyong looking to enter more markets

Ssangyong’s profits have been coming down as the company’s two biggest export markets (Russia and China) are going through a bad phase. About 50 percent of the company’s exports come from Russia, which has almost come down in single digits and at the same time, China is going through a difficult phase, reducing the company’s export sales.

“We are looking more export markets for Ssangyong with new products,” stated Dr Pawan Goenka, Executive Director, Mahindra & Mahindra in a conference. Mahindra also claims that Ssangyong’s latest launch— Tivoli— is one of the biggest launches in this year in Korea itself. This new compact SUV will be a major boost for the company and will help them enter several new markets.

With the reduction in export numbers and the increase in the wages in South Korea, Ssangyong’s profits have come down. The company has invested about USD 900 million for a new set of products that will be launched in CY15-CY17. With these new products, Mahindra will be looking at entering several new markets for Ssangyong.

“The Tivoli is one of the biggest launches this year, not just for Ssangyong but in Korea as well,” stated Anand Mahindra in the financial year results conference with the analysts. Mahindra is looking forward for the coming years with several new products not just for Ssangyong, but even for Mahindra as well. Mahindra has invested about INR 1000 crore in Tamil Nadu and bought 455 acres of land. Of this more than 100 acres has already been allotted to Mahindra and the company will be developing its own test track and an automotive plant, after the Chakan is running in full capacity. At the moment, the second phase of Chakan plant is under construction and will have a capacity of 300,000 annual units.