South Korea based Ssangyong all set to build cars in China

Ssangyong will soon make its way to Chinese Automobile market

Ssangyong will soon make its way to Chinese Automobile market:- The South Korean car maker Ssangyong Motors has declared that it will now be building its cars in China, in collaboration with China’s Shaanxi Automobiles. The joint venture will have a new plant located in the Xi’an Economic and Technological Development Zone in Shaanxi Province, and will also set up an engine plant, an R&D center, as well as a distribution center.

Ssangyong will soon make its way to Chinese Automobile market
Ssangyong Motors

About the new centre

The production will start in 2019 with a starting annual capacity of 150,000 vehicles increasing to a full capacity of 300,000 vehicles. The plant will be producing SUVs, MPVs and pickup trucks under the same brand name. In future, the plant also plans to make a line of electric vehicles under a different Chinese brand.

This plant will be Ssangyong’s first local production base situated in China, thought currently it sell its own cars in the Chinese market. The brand’s ongoing offerings in China are being imported from South Korea and therefore are relatively expensive. Local production will apparently lower the prices and will also allow Ssangyong to fine-tune their cars according to Chinese tastes.

Ssangyong will soon make its way to Chinese Automobile market
Ssangyong’s Tivoli

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The collaboration

The joint venture has yet not announced about which cars it will making but if it goes by popularity its SUVs, the Tivoli and the Korando are the most likely SUV candidates.

Competition in the SUV is quite fierce, with numerous of cars on offer, from both Western and Chinese brands. If Ssangyong wants to gain in this market it ought to come up with an original unique selling scheme. As for now, the brand seems to focus entirely on having stylish design, an area where the Chinese automakers lag behind.

Not well known around the world, Ssangyong is the currently the fourth largest South Korean automaker. It was acquired by India’s Mahindra & Mahindra in 2011, and currently produces cars in South Korea, Russia, and Ukraine. The company makes an entire range of compact and medium sized SUVs and a single sedan.

On the other hand, Shaanxi Automobile Group is one of China’s largest automobile group, which was founded in 1968. It produces a wide range of trucks, and bus chassis. It has a joint venture with the Cummins making truck engines for Chinese market. Interestingly, Shaanxi Automobile has so far no experience in making the passenger cars.

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