Speaking to the media at the 56th Annual ACMA (Automotive Component Manufacturers Association) Convention, Mahindra and Mahindra Executive Director, Pawan Goenka said that the company has no plans to bring more SsangYong models in India anytime soon. The statement does come as a disappointment for those who were waiting for the Korean manufacturer's SUVs, but also clears speculations, about when the Tivoli compact SUV would be making its way to the Indian market. Speculations were rife, especially after the compact SUV was showcased at the Auto Expo this year.
Clearing the air on the future of brand SsangYong in the Indian market, Dr. Goenka said "SsangYong was never acquired to bring its products to India. That was not the primary purpose why we (Mahindra) acquired SsangYong. We happened to bring Rexton, that SUV didn't do well, we admit that. But that was not at all a barometer for whether SsangYong did well or not did well (in the country)."
SsangYong Rexton
Acquired by Mahindra in 2011 with a 70 per cent stake, the Rexton is the only offering under the SsangYong brand in India and it was expected that the company will introduce the much popular Tivoli as an urban offering. The SsangYong Tivoli has been widely accepted in international markets as a premium and urban SUV and was expected to replicate its success in India against the Hyundai Creta and Renault Duster in the segment.
Nevertheless, Mahindra is instead working on a new compact SUV for India which will be based on the SsangYong Tivoli's X100 platform. Goenka had previously conveyed that the Indian UV maker was working on two new platforms, one of which will make its debut in the next 14-15 months. It has confirmed that the Tivoli based SUV will be sold under the Mahindra brand name and will hit the roads next year. The model is likely to be powered by the 1.5-litre diesel and the upcoming 1.5-litre petrol engines.
SsangYong Tivoli has been extremely popular overseas
Speaking on SsangYong's performance in its domestic market, Dr Goenka said that it has been the most improved company in terms of market share over the last 3-4 years in the Korean market. The company's average year-on-year growth has been higher than the industry average and the last three quarters have been profitable. A big step up when you consider that the company was almost bankrupt at the time of acquisition.
Furthermore, Goenka confirmed that SsangYong is not working on a product particularly for the Indian market or emerging markets. This comes a major move for Mahindra as the absence of SsangYong will mean the company now plans to move the price ladder in terms of products. So, it is possible that there will be a host of new and premium SUVs coming from the automaker in the Rs. 20+ lakh space in the future.
Mahindra XUV Aero
The Mahindra XUV Aero concept that was showcased at the expo is one such example that could make it to the premium SUV segment, if it goes into production and would be capable of competing with a host of 5-seater premium SUVs like the Honda CR-V, Hyundai Santa Fe as well as the upcoming Nissan X-Trail. However, that and a host of other models are still some time away and would make an interesting portfolio for the automaker.
