To enter overseas markets by Mahindra XUV500

Mahindra and Mahindra to synergise operations with its Korean subsidiary, Ssangyong Motor Company (SMC) is planning to start the production and sales of the hot selling, XUV500 in the Korean market.

 Pawan Goenka, president Mahindra and Mahindra said, "We are integrating operations with SMC, we have decided to develop all new platforms jointly with our Korean subsidiary. A new product based on a new platform will not be out till 2015. In the meantime, we have decided to bring Rexton to India and are now looking at assembling the XUV500 in Korea."

 In addition to the Korean market, Mahindra is also mulling to commence the production process of its products in the Russian market where SUVs are very popular. Mahindra is in initial talks with Ssangyong's distributor in Russia Solaris to assemble Mahindra products.

 "Russia is the second largest market for the Ssangyong after Korea. As many as 600,000 SUVs are sold there annually. We are in talks with out partner to decide on what product platforms make sense for the market. If the negotiations materialize, we will start assembling Mahindra products in Russia from completely knocked down kits in two year." Goenka said.

 Mahindra acquired the Korean brand in November 2011 by buying 70 per cent of stakes in SMC. With the aforementioned plans, Mahindra is aiming to synergise operations with its subsidiary in terms of sourcing, manufacturing and distribution in order to yield better profits for both the brands. Mahindra also aims at leveraging SMC's strong research and development capabilities to develop products and expand its portfolio for global markets and both the brands are already mid-way in jointly developing two new platforms - each specific to India and Korea.

 SMC is rearing to launch its first product in India, the SUV Rexton, which is expected to arrive in the country by the end of this year. After the Rexton SUV, Ssangyog will bring the Korando C in the Indian market by 2013.