Monday, 6 February 2012

Ssangyong Motors to establish manufacturing base in India, to invest $1.2 Bn

Ssangyong Motor Company has reported that the company might set up manufacturing facility in India for designing, developing and manufacturing the four vehicles that the car maker is planning to launch in the coming three years.

Choi Jong-sik, Ssangyong's vice-president, sales, also said the company plans to invest over $1.2 billion over the next three to five years, which will help it roll out four new products and their variants.

"If you see manufacturers like Hyundai, they are exporting cars to many countries; so possibly, we may explore such opportunities in future," Choi said, adding, "We know the cost of manufacturing is lower in India, but the quality should be of international standards."

Rexton and Korando from Ssangyong will be the first products from the Ssangyong portfolio in India, which will  be launched this year. The Compact SUV code named S101 is also under development which according to sources will be launched at price between Rs 3-4 Lac and will compete with the other prevailing hatchbacks in the market.

VG Ramakrishnan, VP at market research firm Frost & Sullivan, said: "The ownership is what may be driving the move. And if you have a product, which is well suited to the needs of the BRIC markets, it makes sense to manufacture them in India instead of a high-cost base such as Korea." Ssangyong can benefit from joint manufacturing and joint sourcing and, in the process, also arrest the high customs duty, Ramakrishnan added.


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