Mahindra to launch premium car from SMC stable in 18 months
Auto major $11.1 billion Mahindra Group would launch its premium car from Korean SsangYong Motor Company (SMC) stable in 12-18 months, a top company official said on Wednesday.
The Indian business conglomerate had acquired 70 per cent stake in South Korea's SsangYong in August 2010 for Rs2,105 crore.
"(After the acquisition) what we are trying to do is to ensure that it will remain a strong Korean brand. Number two it will have a strong financial stability and we will ensure that it will have a long term ownership...", Mahindra Group vice-chairman and managing director Anand Mahindra told reporters on the sidelines of a function.
Stating that the company was in the process of studying the viability on introducing products from SMC in India, he said: "We are looking to introduce the high-quality premium vehicle in the next 12-18 months. The study is still on... But they (SsangYong) are very optimistic and we are very focused on bringing their products to India".
Asked whether the company would manufacture the products in India, he remained affirmative saying they have a variety of sites in the country and hoped that they would end up selecting the right location for manufacturing the products.
"No decision has been made so far. We are just working on the viability and localisation, " he said.
"It will be a premium brand. It will match with the aspirations of Indian volume market ... We are going to provide a very premium quality car," he said.
Asked on what was the challenge he was facing, Mahindra replied saying it was on the restoring the brand in the face of the consumer.
"Korean people has tremendous pride on the products made in their country. In Seoul, 80 per cent of the cars on the road are Korean. People buy the products with pride," Mahindra, who had recently been to Seoul, said.
Dwelling on SsangYong acquisition, Mahindra said the company was facing frequent change of ownership and labour issues.
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