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M&M looks to assemble products in Russia

By Motortrend India Staff   |   21 February,2012

Mahindra & Mahindra on Tuesday said it is looking to assemble its products in Russia through the distributor of its South Korean subsidiary SsangYong in the next two years.

“Talks are on with the Russian distributor of SsangYong on assembling Mahindra products there. It is at a very initial stage and we are in the process of deciding what products should it be,” Mahindra & Mahindra (M&M) President (Automotive and Farm Equipment Sectors) Pawan Goenka told reporters in New Delhi.

He said SsangYong already has assembly of semi-knocked down units in Russia through its distributor Solaris.

“...but if the Mahindra products are to assembled, it will be in CKD route,” Goenka said.

Asked about the timeline, he said: “It is too early to say, but it may take two years to begin assembly there.”

On the domestic front, Goenka said the company is looking to expand the production of its sports utility vehicle XUV500 to about 5,000 units a month, but did not give a timeline.

“By May, the output will touch 4,000 units a month from the current 3,000 units,” he added.

In order to meet the domestic demand, the company has slowed down the launch of the vehicle outside India.

“We were supposed to enter markets like Australia and are ready to launch XUV500 in many markets in terms of homologations and regulations. But we have decided to slow down to met domestic demand,” Goenka said.

At present, XUV500 is sold in South Africa and about 400 vehicles have been despatched so far.

Goenka said the company is, however, meeting the South African demand of about 100 units per month.

M&M is currently gearing up to launch SsangYong’s SUV Rexton in India during Diwali this year. The vehicle will be assembled at the Chakan facility in Maharashtra.

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