M&M to develop joint product platform with SsangYong

Utility vehicle maker Mahindra & Mahindra (M&M) today said it was in the process of finalising product platforms jointly with South Korea's SsangYong Motor Co which it acquired last year.

"We are investing in product and brand development in SsangYong Motor Co. Both the teams of M&M and SsangYong Motor Co are working together to develop new product platforms over the next 3-4 years," M&M President Automotive Sector Pawan Goenka told reporters here.

M&M had acquired a 70% stake for $378 million in the South Korea's third-largest maker of sport utility vehicles, Ssangyong Motor Co in 2010.

"We are not expecting SsangYong Motor to turnaround this year, but we are focusing on volume growth of the company," Goenka said, adding that the company is pleased with Ssangyong's performance and it is on track to achieve target of 1,20,000 units in 2011.

The company has sold 55,000 units in the first six months and hopes to sell 65,000 vehicles by December 2011.

Ssangyong's dependence on Western Europe reducing, and it is now expanding in Russia, South America and China in a big way, Goenka said.

The company also said that its capex and investment for the next three years remains unchanged at Rs 7,000 crore.