SsangYong & M&M Co-Developing New Petrol Engines

Future technology developments

 

SsangYong is set to work with its Indian parent company, Mahindra & Mahindra, in developing a new range of petrol engines for use in future models of both brands, although a launch date is yet to be confirmed.

M&M is currently a diesel exclusive manufacturer; however it is being hit by the slowdown of the Indian diesel market, affected by government price increases coupled with increasing maintenance costs of diesel cars.

Looking at the long term and future needs, M&M has decided to prepare ahead of the game and has teamed up with its Korean subsidiary, co-developing petrol engines from scratch. It has been confirmed by the company that the engine developments will come fresh from the drawing board- as opposed to based on existing designs. [1]

“Our earlier petrol engines had some compromises because they were based on a diesel engine but our new petrol engines will be an independent, grounds up development and therefore as good as any other petrol engine in the market at that time” said Goenka, Executive Director of M&M. [2]

The companies will jointly develop three and four cylinder engines with varying capabilities.

SsangYong’s smallest model is a 2 litre, whilst M&Ms is even smaller at 1.5 litres, and six engines in total will be developed- three for each company. They will most likely be used to power up their new model launches, and Goenka explains that the new developments will have a more acceptable pricing proposition in India. [3]

It is speculated that the SsangYong board has approved the planned investment of Rs 6000 crore till 2016 to fund the engine development project, with M&M investing the same.

The joint development allows the two companies to achieve economies of scale, and access to both Indian and Korean suppliers and sourcing respectively.

The joint venture is apparently a challenging exercise due to the difference in quality controls and specifications.

However the benefits of co-development will clearly outweigh the difficulties as it is estimated that partnering up will allow the two companies to produce 300,000 engines per year, as opposed to an estimated 80,000 individually. [4]

Image from same source>>>>

With a current re branding of the SsangYong brand and strategy, the Korean car giant may be unrecognizable in the upcoming years…

By Parvinder Perry Singh

References

[1] Mahindra Cars India: http://www.mahindracarsindia.com/tag/ssangyong

 [2] Autocar India: http://www.autocarindia.com/auto-news/mm-ssangyong-jointly-developing-petrol-engines-358137.aspx

 [3] The Hindu: http://www.thehindu.com/business/Industry/ssangyong-reworks-india-strategy/article5061884.ece

[4] The Economic Times: http://articles.economictimes.indiatimes.com/2012-09-25/news/34082723_1_m-m-and-ssangyong-south-korean-sports-utility-hemant-sikka/2

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