M&M in talks with Hyundai to source automatic transmission

Mahindra & Mahindra (M&M) is learnt to be in talks with Hyundai to source an automatic transmission for SsangYong, as well as for its XUV500.

Hyundai has a six-speed 2WD automatic transmission and a hybrid continuously variable transmission (CVT) in the international market. Its newest automatic transmission debuted last year. It is an eight-speed RWD (rear wheel drive) transmission which boasts of 130 patented technological innovations.

Both versions could be considered by M&M and SsangYong as their vehicles are available in both front as well as RWD configurations. At present, it is not clear yet as to which transmission it may source from Hyundai. The Mahindra Scorpio has an automatic variant, and the company is also learnt to be working on an automatic variant of its XUV500.

In an exclusive interview with Autocar Professional, Pravin Shah, chief executive, automotive sector, M&M, said: “We keep talking about acquiring and working in a collaborative way, but I can’t talk about this specific point (sourcing from Hyundai).”

If talks with Hyundai succeed, M&M may source an automatic transmission for the XUV500. According to a source, it may take up to two years for the XUV500 automatic to be launched, as it will have to undergo validation, tests in various climatic conditions, homologation and crash tests. M&M is currently ramping up XUV500 production capacity to 5,000 units. An automatic XUV 500 is crucial for M&M to play its ‘global SUV’ role efficiently.

Currently, Australia-based Drivetrain Systems International (DSI) is the supplier for automatic transmission to the Scorpio and SsangYong Actyon Sports. There has been a disruption in supplies from the Australian supplier as DSI is shifting its plant from Australia to China, after being acquired by China’s Geely, to benefit from lower cost of operations, sources said.

M&M’s current automatic Scorpio inventory is sufficient to meet demand in the interim period. The Scorpio automatic hasn’t sold in significant numbers as the market is still tilted heavily towards manual transmissions. “Regarding the Scorpio, those who drive personally and do off-roading want to get a feel of being in full control of the vehicle which a manual transmission offers,” says Shah.

SUMANTRA BAROOAH