Ssangyong Motor Co., a Korean SUV-focused producer under India’s Mahindra & Mahindra Ltd., is in talks with Thanh Cong Group of Vietnam to export its complete knock-down (CKD) kits to Vietnam as part of efforts to go global to make up for sluggish sales at home.
Ssangyong Motor has ventured into Europe, India and Saudi Arabia, and its entry into Vietnam would help it expand its presence in Southeast Asia.
According to industry sources on Sunday, Thanh Cong Group recently has suggested a partnership with Ssangyong Motor for cooperation in CKD production. Details of output and partnership are yet to be known.
Ssangyong Motor confirmed it is reviewing various plans to expand its export markets, but added that nothing has been decided yet.
Thanh Cong Group, founded in 1999, is a Vietnamese construction conglomerate with 23 affiliates under its arm and has been assembling CKD kits of Hyundai Motor vehicles in Vietnam since 2009. It runs a joint-venture CKD factory Hyundai Thanh Cong Manufacturing Vietnam (HTMV) and is planning to ramp up the plant’s output to 100,000 units per year next year from current 60,000 units.
Mahindra & Mahindra is reportedly mulling a 230 billion won ($198.4 million) capital injection in Ssangyong Motor to rescue its cash-strapped Korean unit amid sluggish sales. Ssangyong Motor has been in the red for almost three years.
As part of efforts to fight back dwindling demand at home, the company has been actively seeking to expand its foothold in overseas markets.
By Lee Jong-hyuk and Lee Ha-yeon @ Pulse News
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