South Korea’s Ssangyong Motor Co. and its Indian owner Mahindra & Mahindra Ltd. are working on a common process on manufacturing future vehicles such as electric cars, and the outcome of their joint work will be ready by 2020, said the Indian carmaker’s managing director.
“Mahindra is currently developing a joint platform with Ssangyong Motor to be the base for future vehicles,” said Pawan Goenka in an interview with Maeil Business Newspaper last month in the carmaker’s manufacturing base in Kandivali, Mumbai.
“There are limitations from cost if we were to develop EVs independently. If Ssangyong Motor and Mahindra (resources) are combined, we’ll achieve economies of scale which will work favorably for us to lead the market,” he said.
A common manufacturing platform suggests the Indian carmaker will go far with the Korean unit into the age of future vehicles running on renewable energy and automation.
“Working together cannot happen because the top management wants it to happen. Only when the workers feel it is a win-win situation, the benefit can arrive. We have reached that point (to work together),” he said.
He said the Indian carmaker became confident in pushing partnership with the Korean unit to new level after Ssangyong last year did not go on a single strike and delivered the first profit since coming under the Indian company.
“Mahindra worked as a helper, without insisting on its way,” said Goenka. He added that Mahindra would spare no expenses in support for Ssangyong.
“If necessary, Mahindra will ensure that Ssangyong is funded for projects that need to be done,” he said.
Mahindra, the India’s largest finished carmaker, acquired Ssangyong in 2011.
By Lim Young-sin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]