M&M to invest Rs1,500 crore on new vehicle platform with Ssangyong

Auto major Mahindra and Mahindra today said it would invest Rs1,500 crore on development of a new vehicle platform with its Korean subsidiary Ssangyong Motor (SMC).

M&M holds a 70-per cent stake in SMC, for which it paid $463 million (about Rs 2,105 crore) in 2010.

"We expect to see three products jointly developed with Ssangyong. There, we are investing close to Korean Won 300 billion which is almost Rs 1,500 crore," Pawan Goenka M&M president, automotive and farm sector told reporters at the launch of Quanto, a mini SUV.

"This is over next three years and this is only for one product with Ssangyong. There will be more investment for other products," he added.

Goenka added that Rexton SUV, which would represent the first product under the Ssangyong label in the Indian car market would be launched in India.

He added M&M and Ssangyong were developing a new engine platform both for petrol and diesel that would be used by both the companies.