Korea: Hyundai/Kia expands overseas production capacity to 4.14 million in 2012

GM Korea replaces Daewoo brand with Chevrolet while SsangYong restarts under India-based Mahindra

2011/09/27

Summary

 In the January-June period of 2011, vehicle production in Korea grew by 9.7% year-on-year to 2.3 million, which is a record high for the 1st half of the year. In Korea, 740,000 vehicles were sold (up 4%) and 1.54 million were exported (up 15.1%). According to the 2011 forecast that the Korea Automobile Manufacturers Association (KAMA) announced at the end of 2010, vehicle production in Korea will be 4.4 million (up 3% from 2010), sales in Korea will be 1.55 million (up 5.8%), and exports will be 2.9 million (up 4.6%). In 2010, vehicle production in Korea posted a record high of 4.27 million (up 21.6% from 2009).

 In 2010, five major OEMs in Korea increased their production. Hyundai and Kia in the Hyundai Group registered a record production in Korea of 3.13 million; they produced 2.61 million overseas. Overseas production capacity surpassed 3 million, which is expected to increase to 4.14 million at the end of 2012.

 In March 2011, GM Korea changed its company name from GM Daewoo. With this move, the company replaced the Daewoo brand with Chevrolet in Korea. In January-June 2011, the company sold about 70,000, ranked third in terms of sales in Korea following Hyundai and Kia.

 In 2010, Renault Samsung increased sales in Korea as well as exports. It produced a record 280,000. In January-June 2011, sales in Korea declined due to more severe competition in Korea and to a shortage of parts following the Great East Japan Earthquake, but exports continued to increase.

 In March 2011, India-based Mahindra & Mahindra acquired a 70% share of SsangYong Motor, which had been pressing ahead with corporate rehabilitation. Based on the financial power and capability for market development of M&M, SsangYong Motor says that it will enhance its presence as a global SUV manufacturer.



In 1H 2010, production in Korea posted a record high with 2.3 million vehicles

 In 2010, vehicle production in Korea increased by 21.6% from 2009, registering a record high of 4.27 million, supported by stable sales in Korea and increased exports. Also in January-June 2011, sales in Korea as well as exports posted record highs while production in Korea grew by 9.7% to 2.3 million.

 In 2010, sales in Korea increased by 5.1% to 1.47 million though there were no tax reductions or subsidies as in 2009; continued recovery of the Korean economy and diversified models and low-interest loans supported the increase in sales.

 Exports grew by 29% in 2010 and by 15.1% in January-June 2011 due to the recovery of global demand and the increased competitiveness of Korean vehicles. In particular, exports to emerging countries in Eastern Europe, Middle East, and Latin America and to the US increased remarkably.

 Imports increased by 48.1% to 105,000 in 2010 because of the recovery of the Korean economy and the introduction of diversified models. Import cars account for a 7.8% of the total new vehicle registrations (5.6% in 2009), which increased by 17.2% in 1H 2011.

Vehicle production, domestic sales and exports in Korea

(units)
  2005 2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Vehicle production 3,699,350 3,840,102 4,086,308 3,826,682 3,512,926 4,271,741 2,099,557 2,302,600
Domestic sales 1,142,562 1,164,254 1,219,335 1,154,483 1,394,001 1,465,426 710,676 739,197
Export 2,586,088 2,648,220 2,847,138 2,683,965 2,148,862 2,772,107 1,338,772 1,540,646
Import 46,221 56,025 66,594 84,661 70,889 104,977 49,960 58,569
KD kit production 813,720 1,071,841 1,294,385 1,369,747 1,131,718 1,310,162 677,696 714,030

Source: KAMA (Korea Automobile Manufacturers Association)
(Note) Domestic sales do not include import cars.

 



Korea: Korea-EU free trade agreement (FTA) takes effect while it reaches an agreement on Korea-U.S. Free Trade Agreement

 In July 2011, the Korea-EU free trade agreement (FTA) took effect. In December 2010, the United States and Korea reached an agreement on the Korea-U.S. Free Trade Agreement, which will take effect when approved by the legislatures in both countries. In the field of automobiles, the import duties of each country will be eliminated within three to five years. Korea aims to expand exports as it improves price competitiveness in Europe and the USA.

Korea: FTA with EU takes effect provisionally in July 2011

 On July 1st, 2011, the Korea-EU free trade agreement (FTA) took effect provisionally (99% took effect excluding the fields of cultural cooperation and intellectual property rights). Concerning passenger cars, the import duties for midsize/large models (with engines larger than 1,500cc) and for compact cars (with engines of 1,500cc or smaller) will be eliminated within three and five years, respectively. Currently, the EU levies a 10% import duty on Korean vehicles while Korea imposes an approximate 8% import duty on EU vehicles.

Source: nna.asia (May 6, 2011) and various media reports

Korea: reaches an agreement with the US in the field of automobiles on FTA

 Concerning free trade agreement (FTA) with the USA, Korea reached an agreement in the field of automobiles, which was shelved for more than three years after the singing in 2007. When approved by the US and Korean legislatures, it will take effect. Concerning passenger cars, regardless of displacement, import duties will be eliminated within five years. (The US will eliminate a 2.5% import duty on Korean vehicles within five years. Korea will reduce import duties on US vehicles from 8% to 4%, which will be eliminated within five years.). Under the initial negotiations, the import duty on Korean vehicles with a displacement of 3000cc or smaller was to be eliminated immediately, but Korea is said to have conceded to the US in these negotiations.

Source: Automotive News (Dec. 13, 2010)

 



Korean OEMs have production capacity of 5.18 million in Korea and 3.01 million overseas

 In Korea, production capacity of vehicles totals 5.181 million, of which the Hyundai Motor Group has 3.475 million. Hyundai is planning to boost production capacity of its commercial vehicle plants by 150,000 in 2015.

 Hyundai Group is the only Korean OEM that produces vehicles overseas; its production capacity abroad amounted to 3.005 million in January 2011, when its plant in Russia started operations. In addition, the company expects to boost production capacity to 4.14 million at the end of 2012 as it will start operations at its new plant in Brazil and will augment production capacity in Turkey, China, the Czech Republic, Russia, and the US. Besides, it is pressing ahead with a plan to construct a joint venture commercial vehicle plant that is capable of producing 160,000 a year in China.

Korea: Domestic production capacity of vehicles by OEMs

  Plant Annual
production
capacity
(1,000 units)
Models produced
Hyundai Motor Ulsan 1,700 Hyundai Verna (Accent), Click (Getz), Veloster, Avante (Elantra), Tucson, Santa Fe, Veracruz, i30, Genesis, Genesis Coupe, Equus, Grand Starex (H-1), Porter, Mighty
Asan 300 Hyundai Grandeur (Azera), Sonata, Sonata Hybrid
Jeonju 125→140
(2015)
Hyundai buses, trucks
Kia Motors Hwasung 580 Kia Forte (Cerato), K5 (Optima), K5 Hybrid, Opirus (Amanti), K7 (Cadenza), Mohave (Borrego), Sorento
Gwangju 420 Kia Sportage, Carens (Rondo), Soul, trucks, buses
Sohari 350 Kia Pride (Rio), Carnival (Sedona)
GM Korea Bupyeong 500 Alpheon, Chevrolet Aveo, Chevrolet Spark, Chevrolet Epica, Chevrolet Captiva
Gunsan 300 Chevrolet Orlando, Chevrolet Cruze
Changwon 240 Labo (Mini Truck), Damas (Mini Bus), Chevrolet Spark, Chevrolet Aveo
SsangYong Motor Pyongtaek 330 Chairman H, Chairman W, Rexton, Kyron, Actyon, Korando C, Rodius
Renault Samsung Pusan 300 SM3, SM5, SM7, QM5
Daewoo Bus Tongrae 6 Buses
Ulsan 10 Buses
Tata Daewoo Gunsan 20 Trucks
The total capacity stands at 5.181 million a year, with 3.475 million taken up by Hyundai Motor Group. (3.49 million in 2015)

Source: KAMA Annual Report 2011 "Korean Automobile Industry", each OEM's website and others
(Note) Kia consigns production of the Kia Morning (Picanto) to a car assembler in Seosan City, which is not included in the above table.

Hyundai Motor Group's overseas production capacity

Annual
production
capacity
(1,000 units)
Production
volume
in 2010
(1,000 units)
Outline
Hyundai
Motor
India 600 604 Models such as Santro, Accent, Sonata, Elantra, the i10, and the i20 are produced.
Turkey 125→200 95 Models such as Accent, the i20, H-1, Starex, and Lavita are produced. Hyundai is said to be planning to boost production capacity.
China 600→1,000 703 Operation of a third plant that is capable of producing 400,000 a year is scheduled to begin in the second half of 2012. Models such as Sonata, Elantra, Tucson, Verna, the i30, and the ix35 are produced.
USA 300 300 Models such as Santa Fe, Sonata, and Elantra are produced.
Czech
Republic
200→300 200 Hyundai will add a third shift by the end of 2011, planning to boost production capacity to 300,000. Models such as the ix20, the i30, the i30cw, and the ix35 are produced.
Russia 150→200 0 Operation starts in January 2011. The Solaris (Korean name: Accent), which is developed for Russia, is produced. The company enjoys strong sales of the Solaris. It is currently boosting production capacity to 200,000 a year in 2012.
Brazil 0→150 0 Hyundai has resumed the construction plans, which it froze in January 2009, with plans to start operations in the second half of 2012. It produces a compact hatchback (flex fuel) that is designed for Latin America.
Kia
Motors
China 430→730 333 Operations of a third plant are scheduled to begin in 2012. Models such as Cerato, Sportage, Rio, K2, K5, Soul, and Forte are produced.
Slovakia 300 230 Models such as cee'd, pro cee'd, Sportage, and Venga are produced.
USA 300→360 167 Kia invests USD100 million in expansion work and plans to complete it in 2012. It will add a third shift in June 2011. The Sorento and Optima are produced.
Total annual capacity 3,005→4,140 2,632

Source: Hyundai Motor Press Release 2010.11.30/2011.1.19/2011.2.28/2011.4.4/2011.8.5, Automotive News Europe 2011.6.19

 

Hyundai: constructs a joint venture commercial vehicle plant that is capable of producing 160,000 a year with Sichuan Nanjun Automobile

 Hyundai and China-based Sichuan Nanjun Automobile reached an agreement on the establishment of a fifty-fifty joint venture that produces commercial vehicles and concluded a memorandum of understanding (April 2011). The two companies have invested 600 billion won. Initially, Sichuan Nanjun Automobile will upgrade an existing plant in Sichuan Province to start production. The company plans to produce 160,000 commercial vehicles (150,000 trucks and 10,000 buses) a year in 2013, when a new plant will be completed. They will market low-priced models under the Nanjun brand and high-end models under the Hyundai brand. In China, the commercial vehicle market is currently expanding remarkably; Hyundai is planning to sell 73,000 in China in 2011, targeting to sell 160,000 in 2015.

Source: Hyundai Press Release (Apr. 28, 2011)

 



Hyundai Motor Group: sold 3.2 million worldwide in 1H 2011

 Hyundai Motor Group's global sales (a total shipment of vehicles made in Korea and overseas) also increased in 2009, when they were affected by recession, and continued to grow by 23.8% to 5.74 million in 2010. In the January-June 2011 period they also increased by 15.7% to 3.2 million.

 In 2010, sales in Korea only slightly increased, but exports climbed by 21.2% to 1.99 million. In the same period, a shipment of vehicles produced overseas jumped by 38.6% to 2.61 million. In the January-June 2011 period, export and overseas production continued to increase.

 Hyundai Motor Group will aggressively launch new models in each market worldwide under the Hyundai and Kia brands. The Group plans to enhance its brand image with new models that have improved design and performance. In 2011, Hyundai and Kia made available gasoline-hybrid models of the Sonata and the K5, respectively, for the first time, and launched them in the US and Korea.

Hyundai Motor Group's shipment (by vehicles made in Korea and overseas)

(units)
2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Hyundai
Motor
Vehicles made in Korea 1,611,102 1,700,551 1,668,755 1,611,991 1,730,696 855,140 906,968
(thereof:) Domestic sales 580,288 624,227 570,116 701,469 657,897 320,397 343,896
(thereof:) Export 1,030,814 1,076,324 1,098,639 910,522 1,072,799 534,743 563,072
Vehicles made overseas 885,828 900,858 1,112,726 1,493,162 1,881,805 919,258 1,059,359
Total 2,496,930 2,601,409 2,781,481 3,105,153 3,612,501 1,774,398 1,966,327
Kia
Motors
Vehicles made in Korea 1,140,734 1,114,451 1,056,400 1,142,038 1,400,293 650,240 779,334
(thereof:) Domestic sales 269,575 271,809 315,276 411,332 483,412 227,347 247,662
(thereof:) Export 871,159 842,642 741,124 730,706 916,881 422,893 531,672
Vehicles made overseas 266,090 245,505 342,836 391,568 729,655 339,179 452,952
Total 1,406,824 1,359,956 1,399,236 1,533,606 2,129,948 989,419 1,232,286
Group total Vehicles made in Korea 2,751,836 2,815,002 2,725,155 2,754,029 3,130,989 1,505,380 1,686,302
(thereof:) Domestic sales 849,863 896,036 885,392 1,112,801 1,141,309 547,744 591,558
(thereof:) Export 1,901,973 1,918,966 1,839,763 1,641,228 1,989,680 957,636 1,094,744
Vehicles made overseas 1,151,918 1,146,363 1,455,562 1,884,730 2,611,460 1,258,437 1,512,311
Grand total 3,903,754 3,961,365 4,180,717 4,638,759 5,742,449 2,763,817 3,198,613
Source: Hyundai Motor Sales Performance, Kia Motors Monthly Sales Performance
(Note) 1. Domestic sales mean sales in Korea. Export means export from Korea, which does not include KD.
2. Hyundai's shipment of vehicles made overseas is shipment of vehicles from its overseas plants. Kia's shipment of vehicles made overseas is shipment of KD sets from Korea in 2006 and shipment of vehicles from its overseas plants in 2007 and later.
3. Total is the total of the two companies.

 

Hyundai's new model launch (2010-2012)

(Note) Launch time shows the time of launch in Korea unless otherwise stated (This also applies to the following tables).
Launch Outline
New Elantra/Avante Aug. 2010 The New Elantra/Avante is a C-segment compact sedan. It is to be launched in the US in November 2010. In the US, it is produced at the Alabama plant. The 2011 sales target in Korea is 125,000. Hyundai expects to sell 400,000 overseas in 2012 or later.
ix20 Oct. 2010
(Europe)
The ix20 is a B-segment hatchback. It is designed for Europe. A design division in Europe develops and designs the model. The sales target in Europe is 55,000 a year.
New Accent/Verna Nov. 2010 The New Accent/Verna is a B-segment 4-door sedan/5-door hatchback. It is released in China in August 2010 and in the US in January 2011. The model is introduced in Russia as the Solaris in September 2010.
New Grandeur/Azera Jan. 2011 The New Grandeur/Azera is a semi-large high-end sedan, which is remodeled for the first time in six years. Hyundai plans to start marketing the model in major markets worldwide in 2012. The 2011 sales target is 100,000. The 2012 sales target is 120,000.
Veloster Mar. 2011 The Veloster is a new model that integrates a hatchback and a coupe. It is marketed in Korea as a limited model, of which 18,000 units are produced each year. Hyundai launched the model in Europe in the first half of 2011 and in North America and other areas in the second half of 2011.
Sonata Hybrid First half
of 2011
The Sonata Hybrid is Hyundai's first gasoline hybrid model, which uses a parallel hybrid system. It is equipped with a lithium-polymer battery for the first time in the world. Hyundai launches the model in the US and Korea.
i40 Summer
2011
(Europe)
The i40 is a model that Hyundai's Design Center in Europe develops for Europe. It is a midsize sedan/wagon. It is Hyundai's first D-segment model for Europe. It is also launched in Korea in September 2011.
i30 Beginning
of 2012
(Europe)
The i30 is a C-segment model designed for Europe. It is developed by Hyundai's Design Center in Europe.

Source: Hyundai Motor Press Release 2010.8.3/2010.10.1/2011.1.13/2011.3.10, Automotive News Europe 2011.6.19

Kia's new model launch (2011)

Launch Outline
New Picanto/Morning Jan. 2011 The New Picanto/Morning is an A-segment 5-door/3-door hatchback. It is designed by Kia's Design Center in Europe. It is also launched in Europe in April 2011. The sales target is 220,000 a year worldwide. The 2012 sales target is 240,000.
Optima/K5 Hybrid May 2011 The Optima/K5 Hybrid is Kia's first gasoline hybrid model. It is a sister model of Hyundai Sonata Hybrid. It is also introduced in the US in June 2011.
New Rio/Pride Sep. 2011 The New Rio/Pride is a B-segment model that shares the same platform with Hyundai Accent. In Korea, a 4-door sedan, 3-/5-door hatchback are available. Kia plans to start marketing a hatchback in Europe in the fall of 2011, a 4-door sedan in the US in the fall of 2011, and a 5-door hatchback at the beginning of 2012. In China, it released a model designed for China.

Source: Kia Motors Press Release 2010.11.18/2011.1.4/2011.4.21

 



GM Korea: integrates its brands in Korea to Chevrolet

 In March 2011, GM Korea changed its company name; it has integrated the brand names to be used in Korea in the future to Chevrolet. With some exception, the entire models, which will be newly introduced, as well as existing models will be marketed under the Chevrolet brand. The company is planning to introduce eight new Chevrolet models in 2011. It says that, with this strategy, it will enhance its brand image and will expand sales in Korea.

 GM Korea is considered to be an R&D center for GM's next-generation global compact vehicles and an export base of them to countries around the world. In 2010, the company increased production in Korea by 39.8% to 740,000 and sold 130,000 in Korea; it boosted export remarkably from 430,000 to 610,000. In January-June 2011, it increased sales in Korea, export, and production by 19.5%, 10.0%, and 10.5%, respectively.

GM Korea's vehicle production, sales and export in Korea

(units)
2005 2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Vehicle production 646,788 779,630 942,805 813,023 532,191 744,096 375,542 415,109
Passenger car 611,501 683,079 769,092 686,192 467,430 634,569 318,397 407,146
MPV 21,357 74,148 171,456 108,004 53,957 92,940 47,508
Truck 3,170 5,007 576 5,956 4,227 6,158 3,837 2,887
Bus 10,760 17,396 1,681 12,871 6,577 10,429 5,800 5,076
Domestic sales 107,583 128,332 130,542 116,520 114,845 125,730 57,815 69,072
Export 544,809 640,539 807,729 702,916 429,259 610,898 305,488 335,959

Source: KAMA
(Note) MPV means Multi Purpose Vehicles, which include SUVs and minivans (This also applies to the following tables).

 

GM Korea: integrates its brand name to Chevrolet, launching eight Chevrolet models in Korea in 2011

 In March 2011, GM Korea was renamed. The company has eliminated the Daewoo brand in Korea and has integrated its brand name to Chevrolet, which it will continue to use. However, it will not make the Alpheon (=Buick LaCrosse) high-end model and the Damas and the Labo light commercial vehicles, which are currently sold, into Chevrolet models, marketing them under its model names as independent brands. With this brand strategy, GM will increase sales in Korea, which is important in its global strategy, aiming to take more than a 10% share of the market in Korea in 2011 (8.1% in 2010).
 In March 2011, GM Korea started introducing Chevrolet models in Korea. It is planning to launch eight models in 2011, which include the Camaro sports car, the Orlando compact minivan, the Aveo compact hatchback/sedan, the Captiva SUV, the Cruze hatchback, the Corvette, and the Malibu midsize sedan.

GM Korea: introduces a new customer service program

 In March 2011, at the same time as the introduction of Chevrolet brand, GM Korea launched a new customer service program, "Chevy Care 3-5-7." This program provides three-year free maintenance, five-year warranty, and seven-year road service.

Source: GM Press Release (Jan. 19, May 12, and Aug. 31, 2011) and Automotive News (Apr. 18, 2011)

GM Korea: starts a trial test of Cruze EV in Korea

 (Since it was the former GM Daewoo) GM Korea has been developing an EV version of Chevrolet Cruze jointly with LG Chem and LG Electronics. In October 2010, it started a trial test in Korea. The Cruze EV is equipped with a 31kWh battery; the maximum output is 150kW. The cruising range on a full charge is 160km. The maximum speed is 165km/h. The 0-100km acceleration time is 8.2 seconds. It takes 8 to 10 hours to charge the battery on a 220V household outlet. The time of launch is undecided.

Source: Automotive News (Sep. 29, 2010) and others

 



Renault Samsung: export doubled to 120,000 in 2010 and increased by 41% in the 1H 2011

 In 2010, Renault Samsung increased production by 45.0% to 280,000, sold 160,000 in Korea, and exported 120,000. In the January-June 2011, because of the severe competition in Korea and the shortage of parts due to the Great East Japan Earthquake, the company decreased sales in Korea by 38.2% and production by 4.8%. Renault is currently enhancing Renault Samsung as an export base. In 2010, export doubled from 2009, surpassing 100,000 for the first time; it also grew by 41.4% in January-June 2011.

 As global models, the company introduced the SM5 in 2010 and will introduce worldwide the fully-remodeled SM7 in 2011.

Renault Samsung's production, sales, and export in Korea

(units)
2005 2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Vehicle production 118,438 161,421 177,742 187,947 189,831 275,269 137,327 130,792
Passenger car 118,438 161,421 172,860 132,855 161,098 226,520 113,590 130,792
MPV 4,882 55,092 28,733 48,749 23,737
Domestic sales 115,425 119,088 117,204 101,981 133,630 155,697 85,142 52,602
Export 3,610 41,320 54,971 95,043 56,175 115,783 50,160 70,914

Source: KAMA

 

Renault Samsung's new models

Launch Outline
New SM5 Jan. 2010 The New SM5 is a midsize sedan that is remodeled for the first time in six years. In the fall of 2010, Renault Samsung started marketing the model in Asia, Africa, Russia, Turkey, Middle East, Australia, and Mexico as Renault Latitude. It introduces it in 30 countries in Europe in 2011.
New SM7 Aug. 2011 The New SM7 is a semi-large sedan that is remodeled for the first time in seven years. Like the SM5, it shares the same Renault-Nissan global D platform (the former model is based on Nissan Teana). It competes with Hyundai Grandeur and Kia K9 (a successor of the Opirus).
SM3 Z.E. 2012 The SM3 Z.E. is an electric car. The SM3 is a sister model of Renault Fluence. Renault Samsung will introduce 100 units in Korea in 2011 and 500 units in the second half of 2012 to conduct a trial test. The model comes with a motor with a maximum output of 95kW and a maximum torque of 226Nm, and a 24kWh Li-ion battery. The cruising range on a full charge is about 160km. In addition to plug-in charge, the battery can be replaced in three minutes.

Source: Renault website

 



SsangYong Motor: Mahindra & Mahindra acquires a 70% share of the company

 In January 2009, SsangYong Motor started to rebuild its business under court protection, and in March India-based Mahindra & Mahindra acquired a 70% share of SsangYong Motor, bringing it under its umbrella. M&M appointed a Korean CEO, saying that it respects Korean-style management. Based on M&M's financial power, SsangYong Motor plans to expand its business as a global SUV manufacturer.

 In 2010, the company's production stabilized; production increased by 1.3-fold from 2009 to 80,000, of which 90% are MPVs centered on SUVs. In 2010, it sold 32,000 in Korea and exported 48,000. In the January-June 2011, exports grew by 68.8% to 35,000 while production increased by 59.9%.

SsangYong Motor's production, sales, and export in Korea

(units)
2005 2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Vehicle production 135,901 117,123 122,857 81,445 34,703 80,067 35,597 56,913
Passenger car 15,466 12,118 9,571 13,398 5,189 8,285 4,088 56,913
MPV 120,435 105,005 113,286 68,047 29,514 71,782 31,509
Domestic sales 75,527 56,068 60,616 39,165 22,189 32,459 14,953 20,246
Export 65,521 60,035 64,073 43,240 12,747 47,756 20,717 34,967

Source: KAMA

 

SsangYong Motor: Mahindra & Mahindra acquired a 70% share of the company

 In March 2011, Mahindra & Mahindra acquired a 70% share of SsangYong Motor for USD463 million, bringing it under its umbrella. With this move, SsangYong Motor terminated court protection (equivalent to the Corporate Reorganization Act in Japan), which started in January 2009. The company plans to enhance its presence in the global market in the future by utilizing M&M's financial power/capability for market development and SsangYong Motor's technology.
 SsangYong Motor will newly invest 240 billion won under the new management, of which it plans to invest 200 billion won (up 70% year-on-year) in product development and 40 billion won in brand building in Korea and overseas. This investment in product development includes remodeling of the Chairman H and the Chairman W passenger cars, a new model that is scheduled to be unveiled in 2011 and that is based on a compact pickup concept, SUT 1, and another new model that the company plans to launch at the beginning of 2013.

Source: Mahindra & Mahindra Press Release (Mar. 15, 2011)

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