Mahindra & Mahindra with its Korean subsidiary, Ssangyong Motors, will invest USD 900 million (Rs 4,950 crore) on developing new platform for future models. The company official confirmed that this investment will be made over the next three years; it will also support development of six new engines.
M&M auto’s division president and chairman of Ssangyong Motors, Mr Pawan goenka, said “We have plans to bring in several new products to be developed jointly by both the companies and would meet this expenditure partly through fresh equity, internal accruals and external commercial borrowings".
It will have to be seen, whether the new products will be developed in India at their new facility or in South Korea. The Indian utility car major will certainly prefer moving operations to India, as it will reduce manufacturing costs. The Ssangyong Rexton is currently imported from Korea as a CKD with localization of certain parts at the time of assembly in Chakan.