Ssangyongs SUVs to be launched in India

Two sport utility vehicles (SUVs) of South Korea's Ssangyong Motor Co. will be introduced in India, possibly next year, under the company's global marketing strategy with its new Indian parent Mahindra & Mahindra Ltd., a senior executive of Mahindra said Thursday.

Anand Mahindra, vice chairman and managing director of Mahindra Group, said a joint team of Ssangyong and Mahindra was already working on introducing Ssangyong's Korando C and Rexton in the Indian market.

Pawan Goenka, president of Mahindra's vehicle and farm equipment sector, later said the team was working to introduce the vehicles in India as early as next year.

He also noted the vehicles will likely be shipped in complete knock-down (CKD) kits due to India's high import duties on fully assembled foreign vehicles.

"It (exports of Ssangyong vehicles) will be in CKD forms because India imposes high duties of 60 percent," he said in a press conference held on the sidelines of the 2011 Seoul Motor Show at the Korea International Exhibition Center in Goyang, just outside of Seoul.

The international auto show began Thursday with a press day and will be open to the public from Friday until April 10.

Ssangyong Motor, the smallest automaker in South Korea, emerged from a court receivership that began in early 2009 when a Seoul district court approved Mahindra's acquisition of some 70 percent of stake in the company on March 14.

Mahindra, the vice chairman of the Indian automotive group, said Ssangyong and Mahindra will work to create synergies for both of the companies, first by introducing the two Ssangyong vehicles in India and then by setting up joint operations in Africa.

"Africa is already a high potential market, and both Ssangyong and Mahindra produce SUVs that are perfect for applications and terrains of Africa," he said.

Mahindra also pledged full and long-term support for Ssangyong.

"We are proud investors of Ssangyong, and it is going to be a long journey. ... Therefore, it will make no sense to sell our stake in such short time," he said when asked if Mahindra Group was considering reducing its stake in Ssangyong in the near future. (Yonhap)