Korea’s No.4 Automaker Ssangyong Eyeing U.S. Market

Securities analysts and strategists at many of the world’s major automakers are awaiting the outcome of a meeting at which Ssangyong Motor directors discussed and cast votes on the Korean automaker’s plans to enter the U.S. market by 2020.

A spokesman confirms the board met Oct. 26 at Ssangyong’s headquarters in Seoul but declines comment on the U.S. investment proposal that was up for approval.

“As of now, we cannot confirm it,” he tells WardsAuto. “There may be some news coming out, but not today.”

Chairman Pawan Goenka, who is also managing director of Ssangyong’s parent company, Mahindra Group of India, confirmed to the Korea Herald the previous day that the U.S. investment would be presented for board approval at the meeting.

Goenka, whose Mahindra &Mahindra automotive venture holds a 72% stake in Ssangyong, tells the newspaper if the board did not approve the plan Oct. 26, it would be submitted for approval when the board next meets in February.

Goenka apparently anticipates a green light; the newspaper quoted him as saying that once the board approves the plan it will take 3½ years to enter the U.S. market. That would occur in 2020, the same year in which Ssangyong plans to unveil an all-electric SUV, or 2021.

Goenka said Ssangyong also is planning a presence in Russia and Iran.

The board meeting follows recent developments in China, where Ssangyong has withdrawn from its proposed joint venture with Shaanxi Automobile Group to build a full-scale integrated vehicle-assembly plant, engine plant and R&D center in Xi’an, Shaanxi province, with construction to begin in 2019.

In addition to holding the top executive positions at both Ssangyong and M&M, Goenka is India’s honorary ambassador for Korean investment promotion. In that capacity, he plays a significant role in developing Korea-India trade relationships.

Ssangyong is the fourth-largest of Korea’s five major automakers. In the first nine months of 2017, the automaker sold 106,651 vehicles, a drop of 4.5% from like-2016 and less than half of its Pyeongtaek, Korea, assembly plant’s design capacity of 250,000 units annually.