Rexton could be Mahindra and Ssangyong's first joint product

Mahindra & Mahindra is about to start working on a new SUV with its subsidiary firm Ssangyong Motors. The new SUV can probably be Mahindra Ssangyong Rexton as company official informed that the upcoming SUV will be a premium one in the range of Rs 15-20 lakh. By far, this would be the first project on which both M&M and Ssangyong will work together since last year when automobile giant M&M acquired high stakes in the South Korean firm.

Mahindra 7 Mahindra has recently launched XUV 500 at a competitive starting price of Rs 10.8 lakh (ex-showroom Delhi).  Now, both the companies will start conceptualizing the utility vehicle together which is likely to hit Indian market in 2-3 years. The Rs. 15 lakh-Rs 20 lakh range is mostly dominated by sedans like Honda Accord and Toyota Camry while on the SUV front; we only have Tata Aria and Skoda Yeti. So far, the strategy is to bring in products at top end from Ssangyong, while the needs of lower end products will be taken care of by Mahindra, said Rajesh Jejurikar, Chief Executive (automotive), Mahindra and Mahindra. The discussions regarding developing this premium joint product are at final stages and M&M will also launch a chain of service outlets that will cater only to SUVs from M&M and SsangYong. The proposed chain of service outlets is a step towards further strengthening M&M’s presence in the SUV segment. These outlets will cater to the vehicles placed above the Mahindra Xylo. These centres will be in addition to Mahindra’s existing sales and services outlets.

About the upcoming launches, B. Bhaumik, senior vice-president and head of product development (auto division) at Mahindra and Mahindra mentioned that the company will be ready with a sub-4m utility vehicle called Mahindra Xylo mini, by January and launch will the vehicle by the end of this fiscal. However, the sub-4m Mahindra Verito sedan is expected to hit Indian roads in the next fiscal year. On the other hand, Ssangyong aims to launch five facelift models by 2013 and four new models by 2016. Selling 80,000 vehicles in 2010, Ssangyong announced it will leap to a triple sales of 3,00,000 cars by 2016. Ssangyong will begin using Mahindra’s existing network in South Africa by March 2012. With Mahindra’s assistance, Ssangyong will also manufacture its vehicles locally in India and Egypt. Mahindra’s will bag a ramp-up in its global volumes through SsangYong’s 1,300-strong dealer network. With seven models and five brands in its fold, utility vehicles are the Korean auto maker’s mainstay, accounting for 85% of its total sales volume. Mahindra & Mahindra bought a 70% stake in Ssangyong for Rs. 2,105 crore to improve its range of offerings and overseas sales.