Ssangyong Motor Co., South Korean unit of India’s Mahindra & Mahindra Ltd., is venturing into the Middle East by granting a local fi rm a license to assemble and ship its vehicles in Saudi Arabia from 2020.
Ssangyong Motor said recently that it signed a product licensing agreement with Saudi National Automobile Manufacturing Co. (SNAM) in February to allow the Saudi fi rm to manufacture its new premium pickup truck codenamed Q200 in the country starting 2020. SNAM plans to boost the annual capacity to 25,000 units later. Ssangyong Motor expects the latest deal would benefi t its Korean suppliers as the deal would involve an auto cluster for tier 1 auto part suppliers in Jubail, an industrial city in Saudi Arabia.
Ssangyong Motor previously posted record revenue of 3.63 trillion won ($3.2 billion) last year with a dramatic turnaround for the fi rst time in nine years, mainly driven by upbeat sales of its fl agship compact sport utility vehicle (SUV) Tivoli in Korea. The automaker, however, suff ers from a setback overseas due to a lack of demand in emerging markets such as Russia and tough competition from Chinese rivals.
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