South Korean carmaker Ssangyong is contemplating entering the Chinese and US markets as it tries to compensate for an expected decline in sales in the United Kingdom (U.K.) after the Brexit referendum.
The UK accounted for 8.3 percent of Mahindra owned Ssangyong's total sales this year till early July.
In June 2016, the U.K. voted in a referendum to leave the European Union and with the South Korean Won gaining against the British pound, Ssangyong's profits from U.K. sales has taken a hit as well.
Ssangyong currently sells five different SUVs in the UK: Tivoli, Tivoli XLV, Korando, Rexton and the Turismo.
Ssangyong CFO Vasudev Tambe has said that the carmaker is considering building a factory in China. He did add that it was too early to announce anything about the carmaker's plans for the Chinese market.
Carmaker who enter the Chinese market usually set up factories in China to avoid paying hefty levies which are imposed on imported vehicles in the country. Ssangyong currently imports its vehicles to China.
The Korean carmaker also plans to enter the U.S. market, which is currently experiencing a boom in crossover SUV sales, which is Ssangyong's bread and butter. However, any commitment to the U.S. will have to be a long term one as Ssangyong will need to establish itself in the American market, where it is totally unknown presently.