Mahindra might make cars in China soon

  • Mar 8, 2016
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Mahindra is looking for a Chinese partner to produce SsangYong cars in China to rejuvenate the brand in the world’s largest auto market

Mahindra might make cars in China soon

Mahindra has announced that it is looking to find a partner in China who it can have a joint venture with in order to make its products in what is the world’s largest auto market. The joint venture will initially be for the loss making auto manufacturer SsangYong and will also eventually be for homegrown Mahindra vehicles too. 

Pawan Goenka, Executive Director for Mahindra mentioned how it could be easier for SsangYong to penetrate the Chinese market further since the Korean manufacturer already has a small presence there and a hard push to sell more cars could result in the ailing company turning a profit this financial year. The China plans comes close on the heels of SsangYong and Mahindra’s plans to enter the American market. 

That said, Pawan Goenka also said, "China is here and now, U.S. is the future. We are still deciding what it takes for us to launch in the U.S.” Continuing on the topic, “The U.S. is not somewhere you can go in without significant investment in product and brand development. Given the various priorities we have, the U.S. is now somewhat on the back burner, but not stopped,” he said. 

Although there is no official word on which Chinese auto manufacturer Mahindra and SsangYong were in talks with, there are rumors that in 2014, Mahindra had extensive talks with Geely Automotive Holdings about a possible joint venture to make cars in China. A China entry would mean a good boost to Mahindra’s new petrol engine range considering the fact that most cars sold in China are petrol powered. It would also mean a speedier development of electric and hybrid alternatives since certain markets in China are quick adapters of the same. 

SsangYong in India currently only sells the Rexton but has recently unveiled the Tivoli in India at the recently concluded 2016 Indian Auto Expo. The new Tivoli will be officially launched later this year and will be priced between Rs 15-18 lakh to go up against popular cars like the Hyundai Creta. 

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