Ever since being taken over by Mahindra Ssangyong Motors seems have received a new lease of life. The company has been posting good sales numbers, been working on new vehicles with newfound vigor and seems confident of scaling up its operations. The Korean company, in an official statement sent to Motoroids has announced its new vision and strategy for future.
The new vision statement of the company plans to make Ssangyong the “Most Innovative and Respected Korean Automotive Company”. The Korean automaker also plans to sell 160,000 vehicles with revenues of four trillion Won by 2013 and 300,000 vehicles posting revenues of seven trillion Won by 2016.
To achieve this Ssangyong will launch five facelift models by 2013 and four completely new models by 2016. The business for the South Korean automaker will be enhanced through cost re-engineering and harnessing synergy with Mahindra. To expand global market share, Ssangyong will cooperate with Mahindra in strengthening its overseas sales network and advance into fast growing emerging markets. To begin with, Ssangyong will commence using Mahindra’s existing network in South Africa by March 2012. With Mahindra’s assistance, Ssangyong will also move to local manufacture of its vehicles in India and Egypt.
The company held the Vision Declaration ceremony at Yi-Choong Culture Center in Pyeongtaek City. Chairman Dr. Pawan Goenka and CEO Lee Yoo-il unveiled Ssangyong’s new vision, core values and five year business strategy in the presence of about 3,300 executives and employees.
1. Develop competitive products
2. Increase global market share and sales
3. Attain cost leadership
4. Develop next generation technologies
5. Maximize synergy with the Mahindra group and
6. Strengthen organisational capabilities
Ssangyong will also expand its sales infrastructure in Korea and is affirmatively seeking a way to establish a domestic hire-purchase finance company to be able to provide one-stop financial solution. With these and other marketing and brand initiatives, the Company is targeting a 20 percent market share in participating segments in Korea.
Ssangyong and Mahindra shall co-operate across the value chain, especially in R&D, product development, purchasing and sales to generate economies of scale for mutual benefit that shall significantly enhance Ssangyong’s cost competitiveness. In addition, Ssangyong will implement strategies for targeted reductions in engineering, production and warranty costs using innovation as a key driver.
In order to enable it to achieve its targets and implement identified strategies, Ssangyong shall improve its organisational capabilities by innovative HR practices and enhanced business infrastructure as identified during a comprehensive post merger integration exercise and thus become amongst the most preferred employers in Korea.
According to the Company’s Chairman, Dr. Pawan Goenka, “Today we have taken a giant step in the march towards reclaiming Ssangyong’s rightful place as a key player in the global automotive community.”
The CEO of Ssangyong Motor , Lee Yoo-il, stated, “The goal we have set may be challenging, but given the tenacity and determination of the Ssangyong team, I am sure we will achieve it”.