Mahindra & Mahindra is considering its South Korean subsidiary for tapping opportunities in the United States auto market, particularly in the SUV category. The company has already opened a new plant at Detroit at a cost of approximately $230 million. The company’s entry is expected to be via SsangYong Motor Company, its South Korean subsidiary as hinted by Anand Mahindra, the Group Chairman. According to him, the company owns SsangYong and there may be advantages inherent in an entry into the United States market through this subsidiary.
According to Mahindra, there will be no resistance once another Korean brand enters the market. Mahindra was present at the launch of the Detroit plant which may primarily produce off-loaders and the first batch is expected by early 2018. Mahindra is already a known manufacturer of tractors in the United States market and is the third largest tractor seller in the country.
Mahindra stated that the plan will be shaped over the course of time as to whether it will be SsangYong or electric brand or any other brand like Pininfarina which the company also owns.
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SsangYong is a specialist manufacturer of SUVs according to Anand Mahindra and is a niche brand. With SUVs being the most popular car category worldwide, the United States is very important for the Mahindra Group according to him. The $19 billion Mahindra Group has a strong presence spanning 100+ countries, 11 business divisions and more than 2 lakh employees.