SsangYong will "Rise" in South Africa with the support of Mahindra – this was the core message conveyed to a group of journalist during a recent launch of the firm's new Korando and Actyon products. It is fair to say that SsangYong was stuck in the doldrums of uncertainty in the last couple of years with inferior products and lacklustre sales – is this about to change?
The Mahindra intervention started when the firm acquired a 70 per cent stake in SsangYong back in March 2011. According to Mr Ruzbeh Irani, chief executive of Mahindra’s international operations, there are significant synergy benefits between Mahindra and SsangYong that will make their alliance a success. Both companies have extensive knowledge and experience in the utility vehicle market and they have already started to jointly develop platforms, powertrains and other technologies.
South Africa will be Mahindra's first country outside India to market SsangYong products. Sales targets for the first year is 1 500 units with steady growth planned over the next five years. Looking at SsangYong’s new products (keep a lookout for imminent driving impressions) this seems to be an achievable goal. The biggest obstacle to overcome will be to garner the trust of the South African market. According to Mr Choi, Ssanyong's vice president for sales and marketing, this will be realised by delivering premium, robust and speciality products. Expect another two updated models to be launched in South Africa in the next 12 months.
Mahindra is part of the parent company Mahindra & Mahindra which was established in 1945. The automotive sector only accounts for 40 per cent of the total $14,4 billion global group. Other areas of business include farm equipment, trucks, motorcycles, information technology and even holidays. The main vision of the company is encapsulated in the word “Rise” – to empower people to rise above their situation and create a better life for themselves. Only time will tell if SsangYong achieves this feat in South Africa.