Mahindra & Mahindra (M&M) owned Ssangyong Motor may establish base in India for its manufacturing and export operations in order to benefit from low cost of production. The company also plans to make an investment of approximately Rs. 6,000 crore in India over a period of 3-5 years enabling it to develop and manufacture four new car models and variants.
The company will be assembling the new SUVs namely the Rexton and the Korando at Mahindra’s Chakan facility near Pune. It may take up manufacturing and exporting operations of small, compact and sub-compact SUVs that can developed in collaboration with M&M. Ssangyong has plans to explore the export opportunities that manufacturing cars in India can provide, especially the benefit of lower production costs. It however maintains that the quality of the cars will be ensured to meet international standards.
The company has already initiated the process of localization for parts and components of the Rexton and Korando to reduce production costs.
