Mahindra puts Ssangyong’s entry into US market on hold
JAIPUR: Home grown auto major Mahindra & Mahindra (M&M) has put on hold plans to introduce Ssangyong brand in the US, a top company official said.
The company is also averse to introducing Ssangyong Motor Co. branded cars in India in the short to medium term.
“If we had done the launch of Ssangyong in the US we probably would have launched it with a different name...in fact we have decided right now to put it on hold (US launch),” M&M managing director Pawan Goenka told reporters here on the sidelines of the launch of SUV Alturas G4.
He was replying to a query if the Mumbai-based firm was planning to change the name of its South Korean subsidiary which it acquired in 2011.
Goenka said the jury is still out on the matter, with some supporting a name change while others opposing it.
“Our global distributors are against it. As of now we have not decided on it as this matter is not in our priority list right now” he added.
Last year, Mahindra Group chairman Anand Mahindra, while inaugurating its $230 million new plant in Detroit in the US, had indicated that the company may enter the American car market with its South Korean subsidiary.
However, the company later launched off-road model Roxor under the Mahindra brand in the market.
Commenting on bringing the brand to India, Goenka said: “In the short term to medium term horizon we don’t see Ssangyong brand coming here”.
He added that there is really no need because Mahindra brand is fairly established in the domestic market.
“As long as we are able to get the connect with Korean manufacturing and engineering, I don’t think we need to bring Ssangyong brand here,” Goenka noted.
The company sells Alturas G4 brand in Korea under Ssangyong Rexton brand but has launched the vehicle here under the Mahindra badge.
It also plans to launch the upcoming compact SUV codenamed S201, which is based on Ssangyong Tivoli, under the Mahindra brand.
“To establish a new brand in any new market is huge effort and not something that can easily work. Many well known big SUV brands have not been able to sell (in India). It is a wise thing for us to do,” Goenka said.
M&M Saturday forayed into the premium SUV space with the launch of Alturas G4 priced between ₹26.95 lakh and ₹29.95 lakh (ex-showroom).
The company is aiming to sell around 450-500 units of the new model per month. NEW DELHI: The government has increased the outlay by ₹100 crore to ₹895 crore for the first phase of the FAME India scheme to promote mass adoption of electric vehicles, having extended the scheme four times, according to an official notification. The phase-i of the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME India) scheme was supposed to be implemented over a two-year period commencing from April 1, 2015.
It was to be followed by the roll-out of the second phase.
The first phase was extended four times for six months each. The latest extension is in effect till March 2019 or till a notification for the second phase.
The ministry of finance has approved the enhancement of the total outlay on the first phase of the scheme from ₹795 crore to ₹895 crore, according to a gazette notification issued by the ministry of heavy industries and public enterprises, which is implementing the scheme.
This followed recommendation from the Expenditure Finance Committee (EFC) for an additional outlay of ₹100 crore, over and above the existing approved outlay, it added.
Industry leaders believe that currently, there is a need for government support for EVS, which are at a nascent stage in India.
M&M IS ALSO AVERSE TO INTRODUCING SSANGYONG BRANDED CARS IN INDIA IN THE SHORT TO MEDIUM TERM