Leveraging on Ssangyong’s international reach, Mahindra & Mahindra is planning to expand in Russian markets. M&M in collaboration with Ssangyong, is planning a vehicle manufacturing plant in Russia by 2014. The basic idea behind this move is to establish presence in one of the fastest growing markets. Once the plant is set up, it can be also used as a hub for exporting cars to other European countries.
Although the details of this development are unknown, Mahindra may consider a partnership with Sollers which is currently responsible for the assembly of Ssangyong cars in Russia. This deal will not only help Mahindra but also Ssangyong because Russia is the second biggest market for the Korean automaker.
Russia could also prove as an important market for Mahindra because the dynamics of the market are pretty same as the domestic markets. After Mahindra’s foray into the US received a massive setback, the automaker has been constantly looking out for prospective markets to expand its foothold. M&M particularly wants to sell XUV500, its flagship product, internationally because it was developed as a ‘Global SUV’ and has a huge potential.
[Source: Insideline.com]
