Mahindra & Mahindra Is proprietary of SsangYong desde that it rescued it in 2011 of the failure. SsangYong Is the fourth manufacturer of Korea by size, but moves small volumes (144.764 vehiculos in 2015) and is not profitable. Grow is one of the keys to achieve this increasingly near profitability and improve his presence in China looks to be the solution to eyes of Pawan Goenka, the one who is executive director of Mahindra.
Mahindra Has treated during years disembark in United States, but have been a lot of the problems that have done that years afterwards the mark only follow commercialising tractive in North American territory. Recently also it sounded with force the irruption of SsangYong in United States, although now it looks that the Korean byline prefers to centre in markets already existent, where the expansion is simpler.
If SsangYong wanted to go in in United States would have to create from zero a net of distribution, in addition to ploughing an image of mark. In China already have work done in this appearance, since SsangYong commercialises his cars in the Asian country. Manufacture cars in China for the local market could be one of the roads of growth for SsangYong, since of this form the byline could offer the cars to prices more competitive.
In 2014 SsangYong sold in China 11.976 units, although in 2015 the sales in the Asian country collapsed until the 2.460 units, a ridiculous figure compared with the 24,6 million cars sold in the country. IN SPITE OF this collapse and to the crisis in Russia, that copaba 20% of the exports of the mark, SsangYong achieved in 2015 surpass, by little, the sales of the anterior year.
SsangYong Could confront to several difficult challenges for his bet by China. By a part the majority of global manufacturers already have joint-ventures created with Chinese partners, what could hamper find a partner. At the same time, given a sobrecapacidad of production in China, is not so easy as before receive the seen well of the government to associate with a local manufacturer and begin to produce. IN SPITE OF the adversities, SsangYong believes in China.
Nevertheless, the idea to go in in the competed North American market does not disappear of the plans of SsangYong, although it loses bellows and postpones until it look for the best commercial strategy. To start with they would owe to have a model that fulfilled with the requirements of American homologation and this would delay the results of growth in the time.
Source – Automotive News Europe
The article SsangYong puts his eyes in China and move of United States has been originally published in Actuality Engine.
