Mahindra & Mahindra and the Ssangyong Motors will soon start to reap the benefits of their partnership. They will soon start to work on a new line of sport utility vehicle. The cars are expected to hit the Indian market in two to three years.
“We will soon start conceptualizing a utility vehicle together,” said B. Bhaumik, senior vice-president and head of product development (auto division) at Mahindra and Mahindra. “It will be a premium SUV in the range of Rs. 15-20 lakh.” The outcome of the partnership is expected with baited breath as both the companies are known for their expertise in the utility vehicle segment.
Mahindra has a stake of seventy percent for Rs. 2,105 crore and is looking to further its ambitions in the global markets and the range of offerings.
“We will be sharing each other’s platform to develop vehicles,” said Rajesh Jejurikar, chief executive (automotive), Mahindra and Mahindra. “The discussions regarding developing a joint product are at final stages.”
Mahindra will further add advantage to Ssangyong’s expertise for its venture in the Indian market. “Very soon we will be forming a cross-functional team to look after the interests of both the companies,” Jejurikar said. “So far, the strategy is to bring in products at (the) top end from Ssangyong, while the needs of (the) lower end will be taken care of by Mahindra.”
While industry experts are of the opinion that the partnership is expected to work in the positive direction and only add to more volume demand as Mahindra is already a leader in the segment. “The Rs. 15-20 lakh range is mostly dominated by sedans like Honda Accord and Toyota Camry while on the SUV front, you only have Tata Aria and Skoda Yeti,” said Yaresh Kothari, sector analyst at Angel Broking Ltd. “A locally produced vehicle in that price range will attract a lot of buyers.”
Ssangyong will also begin a proposed chain of service outlets, Jejurikar said, was a “step towards further strengthening our presence in the SUV segment... These outlets will cater to the needs vehicles placed above the Mahindra Xylo.”
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