M&M to invest Rs 800 cr in Korean arm SsangYong

Auto major Mahindra & Mahindra today said it will invest over Rs 800 crore to develop a joint platform for two products with its Korean subsidiary SsangYong Motor over the next 3-4 years.

The company today unveiled four models from SsangYong's portfolio at the 11th Auto Expo here. Out of these, the sports utlity vehicle Rexton will hit the Indian market within next six months.

Besides, the homegrown auto major also announced that it will enter into the heavy bus segment, to be developed on Mahindra Navistar platforms, in the next one year.

"We are developing an all new platform with SsangYong. It will be for two different products, but with same platform and engine... It will take 3-4 years to develop," Mahindra & Mahindra President (Automotive and Farm Sector) Pawan Goenka told reporters here.

He, however, declined to share details such as whether the final products will be a car or a utility vehicle.
    
When asked about the investment on this project, Goenka said, "When we develop a platform for one product, it takes Rs 600-800 crore. As this new platform will be for two products, it will require more than that amount."
    
While unveiling the SUV Rexton, he said the vehicle will be launched in India within next six months as a completely-knocked down (CKD) unit.
    
"We are currently setting up the assembly line for the vehicle at our Chakan facility. This will be SsangYong's second CKD operations outside Korea," he said.
    
He added that the company is looking at selling 500-600 units of Rexton per month once the capacity is fully utilised.
    
The company will launch another SUV from SsangYong's portfolio -- Korando C -- next year in India, he said.
    
On sales network for SsangYong vehicles in India, Goenka said it will be distributed through existing M&M outlets.
    
"However, we have not decided yet about the badging of the vehicles," he added.
    
Besides India, SsangYong has CKD operations in Russia for one model.
    
"We are looking to increase the local production from Russia. By next year, we will add more models to our CKD line-ups there," Goenka said.
    
SsangYong Motor will also start CKD operations in Brazil in the next two years, followed by China at a later stage, he added.