Mahindra, SsangYong to have common dealers in next few months

Roudra Bhattacharya Updated - March 12, 2018 at 01:02 PM.

To give both brands larger global play with lower investments

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In a few months, Mahindra and Ssangyong car models could be sold side-by-side in various overseas markets. This strategy will help both brands expand their footprint in new markets in Europe, Africa, Latin America and South-East Asia with relatively lower investments.

The plan to have common dealerships with the recently acquired Korean carmaker it acquired earlier this year, follows the auto major's target of increasing the share of global volumes and revenues for the Mahindra brand four times to 20 per cent by 2016 (around five per cent currently). If Ssangyong is included, the Group share of overseas volumes would be significantly higher.

Brand Demarcation

Mr Pravin Shah, Mahindra & Mahindra's Chief Executive for International Operations (Automotive & Farm Equipment Sectors), told

Business Line : “We should see joint dealerships in a few months time in some overseas markets, though there will be a clear demarcation of the two brands. We're looking at how to use each other's channel – a plan is in the works but not been finalised yet.

“We're looking at all options on the table as we work on the integration of Ssangyong with the Mahindra brand.” He added, “Ssangyong will help the Mahindra brand make inroads into markets such as Europe, where it has good presence. On the other hand, Mahindra will support Ssangyong in markets such as Africa.”

Global presence

Ssangyong currently exports to 35 countries in most regions other than North America. Mahindra, primarily a utility vehicle maker, has third-party car assembly facilities in Eqypt and Brazil, apart from wholly-owned distribution arms in South Africa, Australia and Europe (import vehicles made in India).

Even as the integration and global branding strategy with Ssangyong gets firmed up over the next few months, Mahindra's global plans have also been boosted by its new product range – models such as the Genio truck range and XUV 500 have been developed with global audiences in mind.

“With the help of Genio platform products and the XUV 500, we now have a product portfolio with which we can be competitive in most markets globally. It gives us the opportunity to participate in relevant segments,” Mr Shah said.

By January-March, 2012, the XUV 500 – its most premium model yet – will enter the competitive European market, followed by Australia, Chile and Brazil. The last three markets will also get the Genio truck range in the same period. Currently the XUV 500, Genio and Xylo MUV are only sold in South Africa.

“We would like increase our presence in certain key regions. We're not present in a respectable fashion in South-East Asia, especially Thailand, Indonesia and the Philippines, where the competition is very aggressive from Japanese companies,” he said. Apart from the XUV 500, the Xylo and the Genio, the company also exports the Scorpio (SUV and pickup variants) and the Bolero (to a few markets like Italy and Spain).

>roudra.b@thehindu.co.in>

Published on November 13, 2011 14:56