INDIA

"We are investing in product and brand development in SsangYong Motor Co. Both the teams of M&M and SsangYong Motor Co are working together to develop new product platforms over the next 3-4 years," M&M President Automotive Sector Pawan Goenka told reporters here.M&M had acquired a 70 per cent stake for USD 378 million in the South Korea's third-largest maker of sport utility vehicles, Ssangyong Motor Co in 2010."We are not expecting SsangYong Motor to turnaround this year, but we are focusing on volume growth of the company," Goenka said, adding that the company is pleased with Ssangyong's performance and it is on track to achieve target of 1,20,000 units in 2011.The company has sold 55,000 units in the first six months and hopes to sell 65,000 vehicles by December 2011.Ssangyong's dependence on Western Europe reducing, and it is now expanding in Russia, South America and China in a big way, Goenka said.The company also said that its capex and investment for the next three years remains unchanged at Rs 7,000 crore. "We will spend Rs 5,000 crore on capital expenditure and make another investment of Rs 2,000 crore which includes Phase-I expansion at Chakan in Maharashtra," Goenka said.We are also looking at Phase-II expansion at Chakan or at some other location in the next 3-4 years, he said.Commenting on future plans, Goenka said that the company plans to launch Global SUV, New Verito, Sub-4 metre Verito, Reva NXR in the next one year.Goenka pointed out that the industry may see deferment in capacity expansion, if slow down in growth sustains. The higher interest rates and fuel prices have already impacted the industry, he said.The events in US will definitely impact India, but difficult to define its quantum, he said.He expects positive response from Maharashtra government on the extension of incentive package by end of the month. We will have a relook at the second phase investment in Maharashtra, based on the state government's incentive package, he said. [More]
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