Mahindra To Identify New Vendors For Ssangyong

By By: Vicky.in

Published: Thursday, March 31, 2011, 12:23 [IST]

The Indian auto giant Mahindra & Mahindra is taking steps to migrate nearly 100 vendors to South Korea for sourcing the activities of the newly acquired Ssangyong products for Indian market. As Mahindra & Mahindra (M&M) has got the entity of 70% share from the Korean car maker, the plans are now to meet the vendors who can negotiate with the Korean component suppliers. Of the probable ones are Lokesh, Varroc, Delphi, Steering, Visteon, Lumax, JBM and Minda. The Mahindra company claimed that the move is to find out the possibilities for product improvement practices and to source common parts for economy scaling. Such a meeting was earlier conducted in Capetown, Turkey and Macau while M&M has affinity with more than700 vendors in its dealings.

After the formal acquisition of Ssangyong, the Indian company has constituted a team of officials to assist and negotiate with the engineers in the Korean company. The team will make the feasibility study for the Ssangyong products mainly Rexton and Korando C. Once the possibilities were arrived then the products would be imported to the Indian market. Ssangyong is intended to build brand image in the Indian market thereby promoting product development. Of late Ssangyong has no sound base in the most potential Indian market. For this the Korean company is investing Rs960 crore during this calendar year with the target of 1.2 lakh annual units for the concluding fiscal. The company could achieve the volume of 82000 in the last fiscal.

Article Published On: Thursday, March 31, 2011, 12:03 [IST]

Read more on: #auto news #automobile #mahindra

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