By Lalit K JhaWashington, Nov 26 (PTI) Indian automobile giant Mahindra& Mahindra is eyeing the American car market with its SouthKorean subsidiary exploring possibilities in the sportsutility vehicle (SUV) segment.
The company this week opened a new USD 230 million plantin Detroit, the world's car capital, which got its firstautomotive production facility in 25 years.
The entry into the US car market is likely to be throughthe South Korean SsangYong Motor Company, which is asubsidiary of Mahindra & Mahindra, indicated its groupchairman Anand Mahindra.
He, however, told reporters in Detroit that no date ofentering the American car market has been determined yet.
The board of SsangYong, which was acquired by Mahindra in2011, is deliberating the issue and would announce when adecision is made.
"In automotive, as you know, we own Ssangyong motors andthe advantage of possibly exploring an American entry throughthem is that the American consumer by now has developed greatrespect for the Korean automotive brand thanks to Hyundai andKia," Mahindra said.
"So, they have done all the hard work, now when a thirdKorean brand comes in here, there will be not be resistanceand skepticism. It will simply be tested out as yet anotherKorean product. So, there is a strong logic for Ssangyong tolook in. So that could be another point of entry for the on-road piece," said Mahindra.
The Indian business tycoon was in the US early this weekto open Mahindra's automotive plant in Detroit.
The automotive plant plans to manufacture off-loaders,the first lot of which is expected by early next year.
Mahindra, a well-known brand of tractors in the US, hasemerged over the years as the third largest seller of tractorsin America.
Asked about making cars in the US, Mahindra said: "I hopeso but I don't have a plan right now, nothing I can tell you.
And whether it will be Ssangyong or whether it will be anelectric, or whether it will be some other brand... we ownPininfarina, as you know... I have been on record saying thatwe will want to make Pininfarina electric. Which of thesebrands will come near I don't know.
"We don't, that's the honest answer. But do we have theaspiration to be on road as well as off road, yes," Mahindratold a group of Indian reporters in response to a question.
Asked about the roll out plans for Ssangyong in the US,he said: "Nothing yet, the board is still deliberating it inKorea. But they are definitely exploring".
A Korean brand should be an obvious one and the world ismoving to SUVs, he said.
"Ssangyong like Mahindra in Korea is a specialist SUVmaker. So it is seen as niche. As you know now more and moreof the world's cars are becoming SUVs.
"The move to SUVs is a very, very strong shifteverywhere. Biggest profit makers in America for largecompanies here are SUVs. So this (US) is a very, veryimportant market to come into if we can," Mahindra added.
The USD 19-billion group, which is present in more than100 countries and operates in as many as 11 sectors, employsover two lakh people. PTI LKJCPS.
This is unedited, unformatted feed from the Press Trust of India wire.