Ssangyong Won’t Build Plant in India
Reports of a new $1.2 billion manufacturing facility in India are “very exaggerated,” a spokesman says. Plans are to build Rextons from CKD kits at a Mahindra facility.
Korea-based Ssangyong Motor is not considering a plant in India, but is poised to begin complete-knocked-down exports of its Rexton 4-door midsize SUV to that market, a spokesman tells WardsAuto.
The CKD shipments would begin in the second or third quarter, the spokesman adds, calling reports Ssangyong will invest $1.2 billion in a new vehicle-manufacturing plant in India “very exaggerated.”
Instead, the Rexton will be assembled at parent Mahindra and Mahindra’s facility in Chakan, India, he says.
“We will supply the plant with the Rexton in CKD form and they will assemble and finalize it and market it in India.”
Volumes are targeted at 5,000 to 6,000 units annually. Virtually all parts will come from Korea, including the vehicle’s 2.7L diesel engine, the spokesman says.
By producing the vehicle from CKD kits, Ssangyong will be able to get its product to the Indian market at a reasonable price, analysts note.
If it were exported fully built-up, the Rexton would more than double in cost due to tariffs. The SUV sells in Korea for $22,000-$35,000.
After Mahindra evaluates its experience assembling and selling the Rexton, it will decide whether to build the Korando C compact SUV from Korean-supplied CKD kits, as well.
Korando C volume also would be low, at about 4,000-5,000 units annually.
In addition to production at Ssangyong’s Pyongtaek, Korea, plant, the Rexton is assembled from kits in Sri Lanka.
The Korando C is assembled from CKD kits in Vietnam, Russia and Poland.
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