Ssangyong's fate turn after coming under Mahindra's fold

When Mahindra took over Ssangyong Motor in March 2011, the company literally resurrected the Korean auto major.  Ssangyong losses were surmounting,  the products were thrashed, banks had stopped giving credit to the company and with the decision pending in court whether the company should be locked down or be declared as bankrupt. The scene a year later has taken 360 degree turn, the Korean company Ssangyong is still geared up but this time the battle is not for survival, it’s for return to profitability. With the help of the new compact utility vehicle Korando C,  Ssangyong revenue grew by 32% to Rs.11,150 crore but that did not prove to be a good news as the losses went on the higher side from Rs.107 crore in 2010 to Rs. 450 crore in 2011. The  buzzing question is can Mahindra pull Ssangyong from debit to the credit side.

Ssangyong now is targeting to achieve 1,23,000 units by this year end and 3,00,000 units by 2015 . Mr. Yoo II Lee has come up with a 100 step program to get the company on its feet again. Ssangyong's earlier ability to get to the customers with auxiliary was below 50%, which has now increased to 85%. Ssangyong recently got a promise from the union that it will not go on a strike if the company compliances to the mentioned terms. All these procedures will make the company profitable in round about two to three years. Mahindra made two major changes since it took over the Korean company. Firstly, it infused $200 million in equity to cut down the liability of the Korean Auto major. Secondly it has come up with a new joint development programme under which they will develop three cars platforms which will then churn out different variants to suit the markets of each company. This more is going to be economical and draw the best from each other.

XIV concept aimed at the compact Utility car segment will be the first product of this joint platform, expected to roll out three years from now. M&M will announce more joint platforms in the coming year. Mahindra and Ssangyong, the two SUV majors are planning to develop new set of engines, that will come in various displacements and both the fuel options (petrol and diesel) to meet their requirement. The companies are also working on transmission projects. Mahindra & Mahindra owned Reva is the third partner in the co-development strategy and the three are eyeing to develop an electric vehicle platform. All the development will be done at Mahindra R&D centre in Oragadam, Chennai.Since coming under Mahindra India shelter, Ssangyong  has re-entered China, sales have surged in Russia  and  setting up facility in across BRIC countries with the first Ssangyong slated to launch this Diwali.