Mahindra may use Ssangyong to sell vehicles in USA

It has thus far been a sorrow story for Mahindra trying to sell its vehicles in the US. First its alliance with Global Vehicles derailed, and then the fuel efficiency of its car was proven to be too low. However, the company may eventually get to sell in the US market though using its recent Korean acquisition Ssangyong.

Ssangyong Motor Co. wants to sells its vehicles in the US in two to five years, company’s Chairman Yoo Lee told Automotive News. The company sees a potential of upto 20,000 units per year in the American market. The quoted time of two to five years would be required to meet the stringent emissions and safety norms for the country.

This is music for Mahindra’s ears (probably been played by Mahindra only), which has been struggling to place its vehicles in one of the world’s largest car markets, where it has been trying to enter since 2009. The important thing here is that Mahindra is currently entangled in a legal battle with Global Vehicles of the US, which had brought together around 350 dealers in the country to sell the Indian carmaker’s vehicles before the deal fell apart. These dealers are now apparently waiting for the Mahindra vehicles to arrive, with no sign of the vehicles coming in the near future.

Mahindra can use the Ssangyong dealerships as a backdoor to mark an entry in the US market. If it manages to win its pending case against Global Vehicles that is. Else it will have to provide pick-ups to the 350 dealers under Global Vehicles.

The entire matter seems to be getting complicated by the day. The ruling on the Mahindra – Global Vehicles case is pending in a British arbitration panel. What course Mahindra take for the US will ultimately be decided once the judgment comes out.