Ssangyong may set up unit in India

Ssangyong may set up unit in IndiaSouth Korean manufacturer Ssangyong Motors, a unit of Mahindra & Mahindra, might be ready to shift its manufacturing facility to India in order to benefit from the lower costs.

Ssangyong might invest upto $ 1.2 billion over the next three to five years in the country to set up a manufacturing facility to produce and export compact and sub-compact SUVs to the global market.

Choi Jong-sik, Ssangyong's Vice-President for sales said, "The investment of over $1.2 billion will help the company in rolling out four new products and their variants."

The company is planning to launch its Rexton and Korando C SUVs in India later in the year. The company might starting production of smaller compact and sub-compact SUVs that is being produced by Mahindra & Mahindra.

Choi-Jong also said that the investment will allow the company to launch the four new models in the country. He said that the company understands that the cost of production will be lower but it will have to ensure international level quality.

SsangYong Motor is the forth-largest automobile manufacturer in Korea. M&M had acquired 70% share in the company in February 2011 after it was named the preferred bidder in the sale of the company.