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Korean Market Attracts More Indian Auto Makers
Mahindra & Mahindra, the South Asian country's top utility vehicle producer, had its focus on Korean market. Earlier this month, Mahindra was picked up as the preferred bidder for Ssangyong, which is currently under court receivership, and if all things go as scheduled, the final deal is supposed to be signed in November.
Market watchers are saying that the alliance between Korea and India makes sense in the automobile sector.
For instance, Hyundai Motor is doing well in India and Tata has proved quite a success here. Mahindra is also widely expected to play a big role in reviving Ssangyong, which has an edge in sports utility vehicles and luxury sedans.
With an annual capacity of more than half a million cars, Hyundai Motor India is presenting advanced models in its state-of-the-art Indian facilities situated near Chennai to meet the rising demand in the country and also it exports to Europe.
When comparing Hyundai in India and TDCV in Korea, the performances of TDCV are by no means inferior to that of Hyundai Motor, India. TDCV has remained profitable since its launch in 2004 and recorded 683.8 billion won in turnover and 23.5 billion won in operating profits during 2009. The figures represent more than 100-percent increase compared to 2004 and its 2009 exports has increased by four folds with the help of Tata's global sales networks.
One of the automobile experts feel that the advantage between the Korea-Indian collaboration is the implementation of the Comprehensive Economic Partnership Agreement (CEPA). Companies of both nations can easily trade car components with reduced costs.
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