No plans to introduce SsangYong brand to US market soon: M&M
JAIPUR: Mahindra and Mahindra’s (M&M) Korean subsidiary Ssangong Motor Company (SMC) will not be foraying into the United States (US) market anytime soon, with the Indian auto major deciding to hold back plans to introduce Ssangyong products to the US.
Speaking to reporters on the sidelines of the launch of Mahindra’s new SUV — Alturas G4 — M&M managing director Pawan Goenka responded to queries on Ssangyong by disclosing that there were no plans to change the Korean brand’s name.
“If we had done the launch of SsangYong in the US we probably would have launched it with a different name...in fact we have decided right now to put it on hold (US launch),” Goenka added. M&M had acquired SMC in 2011.
Mahindra Group chairman Anand Mahindra had last year indicated that M&M might introduce SMC models to the American market, while inaugurating a new $230 million plant in Detroit.
As far as the name change is concerned, Goenka observed that the jury was still out for now. “Our global distributors are against it. As of now we have not decided on it, as this matter is not in our priority list right now,” he said.
The company is also not considering launching Ssangyong in India anytime soon. “In the short term to medium term horizon we don’t see SsangYong brand coming here.... As long as we are able to get the connect with Korean manufacturing and engineering, I don’t think we need to bring SsangYong brand here,” Goenka noted.
M&M currently sells the Alturas G4 in Korea under Ssangyong’s Rexton brand, but has launched the product under the M&M badge here. The company is also planning to launch the upcoming compact SUV code-named S201, based on SsangYong Tivoli, under the Mahindra brand.
“To establish a new brand in any new market is huge effort and not something that can easily work. Many well known big SUV brands have not been able to sell (in India). It is a wise thing for us to do,” Goenka said.