Mahindra's first SUV in the US likely to be a SsangYong

Mahindra & Mahindra, which inaugurated its Detroit plant on November 20, 2017 is likely to introduce its first US offering from the stable of its South Korean subsidiary SsangYong Motor.

As reported earlier by Autocar Professional, on Mahindra’s first vehicle offering in the American market to be a new off-roader based on the Mahindra Thar – to be called the Thor – and will be powered by an engine borrowed from SsangYong's Tivoli, says an industry source. It could be the SUV's 1.6-litre engine which meets Euro 6 emission norms. The first vehicle from M&M's Detroit plant could be the Thor, or an UTV (Utility Task Vehicle).

It seems Mahindra has dropped a subtle hint on its first introduction of its offering in the American market. As per a article in ‘The Hindu’, interacting with media at the inauguration, on its next step for the UV market and whether the first offering would be from the SsangYong stable, Anand Mahindra, executive chairman, Mahindra Group, said: “Not imminent, though it remains an aspiration. Americans are familiar with Korean brands and the logical step is for Korean group company SsangYong to come in with its models. But it is for the SsangYong board to take the call.”

This comes in the back of the comment on its October 2017, sales made by Choi Johng-sik, CEO of SsangYong Motor Company, on November 1, 2017 said, "We will increase global sales by expanding the Rexton's global launches and strengthening sales activities aggressively." The company further mentioned  that it will expand the Rexton's global launches from the European market to the Central and South American markets.

The automobile market in the US has seen acceptance of non-American brand over the years, in fact as per October 2017, sales data out of the total 1,354,975 vehicles sold around 66 percent of sales were contributed by non-American brands. South Korean automakers over the years have seen global acceptance with their competitively priced vehicle offerings around the globe. It would make sense for Mahindra to utilise the acceptance of its Korean brand in the US market, with Hyundai Motors and Kia Motors already receiving a warm welcome in the automotive segment.

Mahindra has invested a huge amount of fund since it acquired the troubled-SsangYong brand in 2009, and the company has been working on its turn-around plan. In February, 2015, Anand Mahindra in an interview had said, “We have put on record that we are targeting the American market. I believe that for the Mahindra Group as a whole, SsangYong makes good sense as a flag bearer for the group in the US, not least because Korea as a country has established its reputation there for making good, reliable automobiles. It’s common sense for us to support SsangYong’s push into the US.”

With the announcement of Roxor it is yet to be seen, if Mahindra will try and capitalise on its South Korean brand or go ahead with a completely new offering.