Mahindra South Africa’s decision to take up the distribution of SsangYong vehicles locally last year has boosted the presence and performance of the South Korean company in South Africa.

Mahindra SA chief executive Ashok Thakur said last week that it had started the distribution of SsangYong vehicles with 19 SsangYong dealers but it now had 30 outlets excluding its dealers in Namibia, Botswana, Zambia, Zimbabwe and Mozambique, with several more in the pipeline.

The agreement between Mahindra SA and SsangYong followed the takeover of the South Korean company by Mahindra & Mahindra, the $15.9 billion (R144bn) business group with its roots in India.

SsangYong was previously distributed in South Africa by the listed Imperial Group.

Thakur said SsangYong achieved about 800 sales in South Africa last year, accounting for about 15 percent to 17 percent of Mahindra and SsangYong sales in the country.

However, Thakur believed there was an opportunity for SsangYong to grow its sales to 5 000 vehicles a year and almost equal those of Mahindra.

He believed this growth would be possible because of all the resources and infrastructure Mahindra SA was creating for SsangYong in South Africa plus its investment in after-sales training, spare parts and brand building.

“SsangYong is a premium brand SUV manufacturer and also premium luxury double cab manufacturer. Such products are in great demand in South Africa,” he said.

Thakur said it had offered SsangYong dealerships to its Mahindra dealers to allow them to expand their business, boost turnover and returns and strengthen their business.

“We are quite confident that in the next two years the dealer network will expand to 60 dealers in South Africa,” he said.

Thakur said two large vehicle dealer groups, McCarthy Motor Holdings and Combined Motor Holdings, had also taken up SsangYong dealerships.

He said new products in the pipeline from both Mahindra and SsangYong would also help Mahindra SA to achieve its growth strategy in the country.

SsangYong vice-president for sales and marketing Choi Jong-sik said it improved global sales last year by 6.8 percent to more than 120 000 units and aimed to grow sales by a further 25 percent this year to at least 150 000 units.

Choi said it expected to more than double volumes in Africa from about 4 800 units last year to 10 000 units by 2016.

Ruzbeh Irani, the chief executive of international operations for the automotive and farm equipment divisions of Mahindra, said the acquisition of SsangYong was regarded as a key to expanding its sphere of influence globally and subsequently growing sales and increasing its global footprint.

Irani said it aimed to establish SsangYong as a successful South Korean brand in South Africa.

“There are other Korean brands that are doing very well [in South Africa] and our ambition is to make SsangYong at least as large,” he said.

Irani said Mahindra and SsangYong were committed to the southern African market.

 

Source : iol.co.za