Mahindra Group’s SsangYong Motor to set up JV plant in China
Chennai, Oct 12 (IANS) Mahindra Group’s Korean subsidiary SsangYong Motor Company will set up a car plant in China partnering with Shaanxi Automobile Group, the Indian multinational conglomerate said on Wednesday.
In a regulatory filing in BSE, Mahindra and Mahindra Ltd said SsangYong Motor in a 50:50 joint venture with Shaanxi will produce in the first phase 150,000 units per annum by 2019 and double the capacity in the second phase.
The Chinese venture will be the first overseas vehicle production facility for SsangYong. The joint venture will also make engines for the vehicles to be rolled out of the plant.
Production at the Chinese plant is expected to start during the second half of 2019 and SsangYong Motor will also set up an automotive cluster taking its suppliers there.
The new plant will come up in the Xi’an Economic and Technological Developmental Zone in Xi’an, Shaanxi Province, in northwest China.