Mahindra India increase production capacity and $900 million investment in SsangYong Motors JV
Mahindra Quanto, XUV500 and Rexton production capacity has been increased with immediate effect. This will reduce waiting period, and bookings are now being accepted across more dealerships. Reduced waiting period will help build stronger customer bases. XUV500 deliverioes are on schedule, and Mahindra Quanto has attracted bookings upwards of 12000 units.
The SsangYong Rexton premium SUV has secured over 1500 bookings across 9 Indian cities, and beginning this month will be made available across new dealerships. Production capacity each month has been settled at Quanto 3500 units, XUV500 4500 units and Rexton 500 units per month at present.
Chief Executive, Automotive Division, Mahindra & Mahindra Ltd., Pravin Shah, had this to say, “While we have been overwhelmed at the response from our customers to all the three products which are at different price points, we thought it best to expand capacities so that prospective customers are not inconvenienced with long waiting periods. Being a customer centric company, we have always wanted our products to be conveniently available to our customers with a minimum waiting period. In addition, with their launch across more centres in India, we are sure that that our products will continue to offer a unique value proposition for buyers”.
Mahindra and Mahindra, India have stated that the company will be investing a total of $900 million over the coming four years in South Korean unit SsangYong Motor Co. Ltd. This investment will be channeled to new products being developed by the two companies jointly, while an additional investment of Rs.50 billion is being planned by M&M on its own products over the three year period ending 2014.
It may be recalled that M&M, India’s major utility vehicle manufacturer which also produces tractors and trucks had purchased a major share in SsangYong in 2011 for a sum of $460 million. The two companies will be jointly developing three new vehicles and six engines over the coming four to five years.
Post acquisition by M&M, SsangYong sales has considerable increased. Sales have grown by 6 to 7 percent in the Korean market. In the meanwhile, M&M is also concentrating their full attention on expansion and fresh version of Scorpio and XUV500 and have also announced their intentions to buy out Navistar in truck joint venture. Talks are on and the deal is expected to close by January 31, 2013 as various Government sanctions and approvals are yet awaited.