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Ssangyong, South Korean car manufacturer, now owned by India's very own Mahindra and Mahindra, is contemplating the installation of a manufacture and export base in India to take advantage of the low cost of production available in the country. Speaking of these plans, Mr. Choi Jong-sik, Vice President – Sales at Ssangyong said that $1.2 billion will be invested over the coming three to five years which would help the company bring out new products into the auto sector.
Ssangyong with their head office in Seoul, will be launching both Rexton and Korando SUV in India which will be manufactured at Mahindra's plant in Chakan near Pune. Manufacturing and export operations for small compact cars and sub compact SUVs will also be shifted to India which the Ssangyong is developing along with Mahindra and Mahindra.
Ssangyong announced that they will be investing their own funds in this new project and would not include any finances from Mahindra and Mahindra. The idea of shifting base to India is more attractive to auto companies due to low cost of production as compared to their parent companies along with cheaper and easy accessibility to spares and accessories.
