Mahindra-Owned Ssangyong Motors To Ink JV With Shaanxi Automobile

Highlights
- SsangYong will construct production facilities in China
- Will build Completely-built unit vehicles and an engine plant.
- This is its first overseas production facility
SsangYong will construct production facilities for Completely-built unit (CBU) vehicles and an engine plant. The plant will be spread across 1.23 million sq. mt. in the Economic Technological Developmental Zone in Xi'an, Shaanxi Province
The first phase of construction will establish a plant with an annual capacity of 1,50,000 units by the end of 2019 and the second phase will involve an expansion of the facilities to 3,00,000 units per annum. SsangYong will also establish an automotive cluster with its major suppliers that will also enter the market to ensure product competitiveness and start the production of SsangYong's current models and those under development in the second half of 2019.
Shaanxi Auto has its prowess in producing heavy and special purpose trucks and it also makes vehicles for the military. Shaanxi Auto is also adept at making small light commercial vehicle and pick-ups which is why this venture works perfectly well for Ssangyong and probably even Mahindra
SsangYong had been reviewing the central and western parts of China of the establishment of its first overseas production facility, taking into consideration the Chinese government's policies and the growth potential of the Chinese automotive market, the company said.
Ssangyong Motor CEO Choi Johng-sik commented "It is quite essential to have a local CBU plant in China to increase our competitiveness in the rapidly growing Chinese car market and to increase our sales volume."
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