Mahindra & Mahindra Limited (M&M), the Indian automaker plans to setup an assembly line in Russia, Reuters reports.
Mahindra & Mahindra one of the largest automobile manufacturers by production in India plans to start production in Russia in 2 two years M&M president Pawan Goenka told reporters.
“Russia is the biggest market for Ssangyong outside South Korea,” Mr. Goenka said. “We are engaging Ssangyong’s distributor to look for assembling Mahindra vehicles there.”
“Russia is a huge opportunity already for Ssangyong and holds a lot of potential for Mahindra as well,” said Mr. Goenka, who is also the chairman of Ssangyong. He declined to name the Russian distributor for Ssangyong.
Last month Mahindra & Mahindra reported strong sales growth but net profit fell by almost 10 per cent.
The maker of Xylo and Scorpio vehicles spent 45.8 billion rupees, or 21 percent more on raw materials in the quarter, according to the statement. Mahindra, which raised prices by as much as 3 percent last month, said it expects margins will continue to be under pressure.
Car sales in India have slumped in the past six months, as high interest rates deter customers typically dependent on loans. Sales growth will likely be flat in the fiscal year that ends in March, an industry body said last month.