Mahindra eyes to expand its footprint in Chinese auto market
The largest utility vehicle maker in India, Mahindra and Mahindra, is now looking at ways to get a niche for itself in the Chinese car market, which is also the fastest growing auto market in the world. The company is also chalking out plans to ship its popular sports utility vehicles in other countries like Brazil and South Asia. Mahindra popular utility vehicles include, Mahindra Scorpio, Mahindra XUV 500, Mahindra Bolero, Mahindra Thar etc. These SUVs are highly popular in India, but what remains to be seen is what all SUVs will Mahindra introduce in the overseas market. One of the officials from Mahindra quoted that Chinese auto market is the utmost priority for SsangYong, but for Mahindra it is not as important as the domestic market. Mahindra is planning to foray in the Chinese car market with its Korean subsidiary SsangYong. SsangYong car brand is popular in countries like Russua , though in its native market the brand has been behind rivals Hyundai Motors and Kia Motors. SsangYong was about to face bankruptcy, that is when Mahindra bought 70% stake in SsangYong and put some life to the dying brand.
Mahindra and Mahindra the India based car maker starting importing SsangYong cars in the Chinese market in 2011, but did not get the kind of response which the firm was expecting from the Chinese buyers. SsangYong is a luxury brand and hence it offers premium cars not the mass segment cars, therefore this could one of the reasons behind SsangYoung pale response in the Chinese car market. SsangYong got a blow from SAIC, which is a Chinese based firm and earlier had association with SsangYong. Though Mahindra official did not give any hint as to how many cars SsangYong managed to sell in China, but he did mention that it did not live up to the expectations of Mahindra and Mahindra. Had SsangYong been received well amongst the Chinese car buyers then Mahindra and Mahindra wouldn’t have felt the pressure of slowdown which it is under at present.
Mahindra is chalking out plans to get back with a vengeance in China, the company is doing research on the dimensions like pricing, product, brand building to get back inaction on the Chinese auto market. If SsangYong does well in China it could give take up the Mahindra flag high on the global front, it is going to be a huge achievement for Mahindra and Mahindra as China is the fastest growing car market in the world. Demand for cars is very high here, each household has more than required cars in their garage (a recent report revealed). SsangYong manufactures premium SUVs like SSangYong Rexton and SsangYong Korando along with the Chairman luxury brand, managed to sell around 114,000 units in the fiscal year 2011 to 2012. This also includes the export figures that account for two third of the total number. The company eyes to attain 125,000 unit sales this and in 2013 they wish to touch 160,000 units sales mark.
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