Mahindra and Mahindra (M&M), India’s biggest sports utility vehicle maker by sales, continues to expand its global footprint as it plans to assemble vehicles in Russia in the next two years. The new XUV500 is the first product which could see the launch in the growing Russian market.
Russia is the biggest market for Ssangyong with around 25,000 units exported annually. Saangyong products are assembled in Russia in a semi-knocked down form through its distributor Solaris. However, if M&M looks to assemble the products, it will be in completely knocked down (CKD) form.
According to experts, entering Russia will be a good move for M&M as it is a growing economy. The Russian automobile market grew at around 30% last year.
Talks are on with the Russian distributor of Ssangyong for assembling M&M products there
M&M has been constantly increasing its presence in strategic markets outside India. DNA had earlier reported that the company is mulling to start assembly operations in Sri Lanka, which is one of its key markets. It is also planning to have a strong presence in Southeast Asian countries such as Thailand, Indonesia and Malaysia. Some of its key markets are Chile, Peru, Paraguay, South Africa and African countries.