Back in the early 2000s, models from Mahindra were available in the Malaysian market. Nevertheless, it didn’t gain as much popularity compared to larger automotive giants like Toyota and Nissan at that time. In case you weren’t aware, the brand was actually distributed by USF-Hicom (Malaysia) Sdn Bhd. However, this partnership came to an end and Mahindra all but dwindled away from the local market.
During its yearly Independence Day celebration, which took place this year in South Africa, Mahindra introduced a new concept in the form of a pickup truck called the Global Pik Up, based on the Scorpio N platform. The term “Pik Up” is the name Mahindra presently employs for its pickup truck model derived from the Scorpio Classic, marketed across various global regions.
Mahindra & Mahindra, India’s leading SUV manufacturer, has officially opened its new design centre of excellence in England which will serve as the ‘conceptual hotbed’ for the company’s portfolio of future EV products. Known as Mahindra Advanced Design Europe (M.A.D.E), the facility is part of the Mahindra Global Design Network that includes the Mahindra India Design Studio in Mumbai.
To create future EVs The role of M.A.D.E. is to conceive and create all future EVs and advanced vehicle design concepts. It is equipped with state-of-the-art design tools, enabling it to handle end-to-end design activities including conceptualisation, 3D digital and physical modelling, Class-A surfacing, digital visualisation and Human-Machine Interface (HMI) design.
It also incorporates a complete digital visualisation suite, clay modelling studio, VR digital modelling and digital as well as physical presentation areas.
Two brands, 5 e-SUVs During the official opening recently, Mahindra & Mahindra, also presented its new INGLO EV platform (shown above) and 5 e-SUV proposals under two EV brands, showcasing its vision for the future of electric mobility. The new brands, created specifically for EV products are XUV and BE.
The first of the e-SUVs will be launched in December 2024, followed by two in 2025 and one in October 2026. The launch date for the fifth model is not confirmed but it will be a SUV grand tourer.
Cooperation with Volkswagen Group Additionally, Mahindra & Mahindra also announced a strategic cooperation plan with the Volkswagen Group which will see the German carmaker supplying its MEB electric components (electric drivetrain, battery system and battery cells) for the INGLO purpose-built electric platform.
The cooperation intends to have a volume of more than one million units over lifetime for the 5 proposed all-electric SUVs. The two companies also intend to explore further opportunities for collaboration, opening the perspective towards a broader strategic alliance to accelerate the electrification of the Indian automotive market.
This will encompass potential areas of collaboration in the field of e-mobility, including vehicle projects, the localization of battery cell manufacturing, and charging and energy solutions for the electric ecosystem in India.
“We are happy that we have identified a larger scope of collaboration between our two companies. Together, Volkswagen and Mahindra can contribute significantly to the electrification of India, a huge automotive market with ambitious climate protection commitments. The MEB Electric Platform and its components are key to affordable sustainable mobility around the globe. The partnership not only demonstrates that our platform business is highly competitive, but also that the MEB is well on track to become one of the leading open platforms for e-mobility,” said Thomas Schmall, Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components.
Malaysians would remember SsangYong, the Korean brand which was marketed during the 2000s. Like the other Korean carmakers, SsangYong Motor had been in existence for some time before it appeared in Malaysia. SsangYong’s management saw how the other carmakers in their country had already established themselves globally, so SsangYong decided it would move a bit more upmarket than them. In the 1990s, it got Mercedes-Benz technology to use under licence from Daimler-Benz and developed a SUV as well as a large sedan and adapted a Mercedes-Benz van to sell under its own brand.
SsangYong in Malaysia
The model that did well was the Rexton SUV, which was competitively priced and well equipped. Competitive Supreme, the importers and distributors, even had the second generation Rexton II assembled locally as it showed much potential. The company also offered other models in the SsangYong range, but market conditions changed and after a run of some 17 years, sales of SsangYong ceased and the brand faded away from the local market.
During the 2000s, Competitive Supreme, the SsangYong importers and distributors, were very active in building the Korean brand. They were encouraged by the response to the Rexton and decided to have the Rexton II assembled locally (below) at the DRB-HICOM manufacturing complex in Pahang.
From Chinese to Indian owners
SsangYong itself went through difficult times too, and ownership changed hands a few times. China’s SAIC had it for a while and then India’s Mahindra & Mahindra acquired it for US$463.6 million in 2011. It seemed to make steady progress under Mahindra & Mahindra but in December 2020, it was revealed that the company’s debts had accumulated to US$285 million, which it could not repay and therefore had to file for bankruptcy.
SsangYong applied for the court receivership procedure which saw a private rehabilitation program that allows the company to restructure the business while it works with creditors. It is allowed to remain fully operational, business as usual. The company aims to quickly end the rehabilitation procedures and create an environment that leads to a successful M&A (merger & acquisition) by looking for a new investor that will commit to continuous future investment.
Accelerating new vehicle development
Central to its self-rescue plan is a full-scale move towards meeting the future demands of the international automotive market. This involves accelerating new vehicle development in preparation for its future (and also to show potential investors what products can be available). This will also include cost-reduction and system efficiencies achieved through production and human resources management.
The first tangible result is the announcement of SsangYong’s first electric vehicle; developed under the project name of ‘E100’, the Korando e-Motion (shown above) went into full-scale production last Monday, June 14. This is the first mid-sized electric SUV in Korea and its name was the result of a competition run within the company. Brand experts who were consulted expect the name to work well in overseas markets.
Due to restricted supplies of semi-conductors, affecting all manufacturers, the Korando e-Motion is scheduled to be shipped in August for sale in Europe and the UK later in the year. Launch plans for the domestic market will be announced as soon as the availability of semi-conductors becomes clearer.
The company has also announced that it is accelerating the development of its next EV, a medium-sized SUV under the project name ‘J100’, This model (shown in concept for in the sketches above) will be launched in 2022. SsangYong has long been associated with SUVs and it promises to offer a ‘modern, authentic SUV’.
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SsangYong Motor Company (SYMC) has filed for bankruptcy as it is unable to repay creditors. The debt level in loans and interest is 60 billion won (about RM220 million) which has accumulated due to worsening business conditions. SYMC had attempted to negotiate with its creditors on extensions for repayment but was unable to reach an agreement.
Following a board meeting recently, SYMC will apply for rehabilitation procedures including a Company Property Preservative Measure, a General Prohibition Order and Autonomous Restructuring Support which is available in South Korea.
Business can still continue
Autonomous Restructuring Support is a private restructuring support programme made with the court which delays the initiation of the rehabilitation procedures by up to 3 months while the company continues its attempts at private restructuring. During this period, the company can continue its normal business activities.
When the company and its interested parties reach the final agreement for the restructuring, the rehabilitation procedure application is withdrawn, and it returns to its normal company status.
A SsangYong dealership in the UK
“We very much regret this situation which is the result of the difficulties being experienced from the worldwide COVID-19 situation, and the concern caused to our partners and stakeholders, especially our employees, sales networks and financial institutions. We are making every effort to transform the situation, and to build a more robust and competitive company for the future,” said an official source from SYMC.
An official spokesperson from India’s Mahindra & Mahindra, which owns 75% of SYMC, said: “During the period of Autonomous Restructuring Support, Mahindra will take responsibility as a major shareholder, and actively cooperate with SsangYong for the normalisation of management through to the early conclusion of negotiations with interested parties.”
Oldest Korean vehicle manufacturer
SYMC is the oldest motor vehicle manufacturer in South Korea, having been established in 1954. In the 1990s, when Hyundai and Kia accelerated their development and grew in size, SsangYong found it was unable to compete head-on and chose a risky path – to instead make more premium models instead of lower cost models. To do this, it had a technical agreement with Mercedes-Benz which enabled it to get a platform and engines to use under licence in models like the Chairman and Rexton.
Instead of competing with Kia and Hyundai, SsangYong decided to make more premium products, using a platform and powertrains licensed from Mercedes-Benz for its Chairman and Rexton models.
However, it had limited success and after 7 years as part of the Daewoo Group, it was sold to China’s in 2004 when the company had financial difficulties. Complications under SAIC ownership saw SYMC again being put on sale and Mahindra & Mahindra was able to get the biggest share for US$463.6 million.
