Mahindra's subsidiary SsangYong might fall short of 2011 target

Mahindra’s Korean subsidiary SsangYong seems to miss its target for the year 2011. The South Korean car manufacturer seems to blame the major economic slowdown in the European markets for their relatively low sales numbers. However, they hope to emerge out of the situation unaffected with the help of the Indian and Chinese auto markets in Asia. The European car market is apparently their key market for growth due to which they have missed the targets to settle down for 1,13,000 units against the portrayed number of 1,20,000 units for the year 2011.

But, despite the unfavourable conditions, Mahindra’s subsidiary has recorded 40% growth in 2011. The SsangYong’s growth is all the more important for Mahindra and Mahindra as they hope to break even with the enormous investment they made in about 3-4 years and the domestic car manufacturer has some high growth plans where its Korean subsidiary is concerned. M&M and SsangYong are working hard to deliver four new products and three platforms in near future. They are keeping their fingers crossed to achieve a high target of 1,60,000 units by 2013 and continue to achieve this target for the next year as well to touch the 3,00,000 unit mark by 2015-2016.

Mahindra and Mahindra is keeping close tabs on the SsangYong Motors to check on its growth every now and then as the SsangYong products could be the weapons to turn around their image as a global player in the world with the Korean car manufacturer’s established presence in the European markets. Just within a year after acquisition, M&M is all ready with two SUVs from SsanYong, the Rexton and Korando, which will be displayed at the upcoming Auto Expo 2012.

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