http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.83Change: 0.29
R/$ = 15.84Change: 0.18
Au 1183.55 $/ozChange: -11.90
Pt 923.00 $/ozChange: -13.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 25, 2012

South Africa loves Korean brands, will SsangYong be next?

Back
Africa|Building|Diesel|DIESEL ENGINES|Engines|Hyundai|Kia|Mahindra SA|Mahindra South Africa|Power|SsangYong|System|Africa|South Africa|Product|Products|Service|Vehicle Manufacturer|Ashok Thakur|Johng-Sik Choi|Korando|Korando|Operations|Rexton|Diesel
Africa|Building|Diesel|DIESEL ENGINES|Engines|Power|System|Africa||Products|Service|||Operations||
africa-company|building|diesel-company|diesel-engines|engines|hyundai|kia|mahindra-sa|mahindra-south-africa|power|ssangyong|system|africa|south-africa|product|products|service|vehicle-manufacturer|ashok-thakur|johng-sik-choi|korando|korando-product|operations|rexton|diesel
© Reuse this



While Hyundai and Kia have made great strides in the global and local markets, the same cannot be said for sibling vehicle manufacturer, SsangYong.

Last year, the financially embattled Korean brand sold around 500 vehicles in South Africa and 113 000 vehicles globally.

However, since being revived by Indian manufacturer Mahindra, which bought around 70% of SsangYong last year, there is hope this lesser-known brand may follow in the footsteps of its fast-growing fellow Korean brands.

The acquisition has also seen Mahindra South Africa (MSA) take over the local distribution of SsangYong vehicles from the Imperial Group.

The global aim is for SsangYong to reach sales of 310 000 vehicles by 2016, with 198 000 of these to be sold abroad.

This year’s sales target is 123 000 units.

Currently, SsangYong sells vehicles through 1 200 dealers in 96 countries. (The global Mahindra network has 800 dealers in 33 countries.)

In Africa outside South Africa, the Korean brand aims to increase sales from 3 500 units in 2012, to 6 000 vehicles in 2016, says SsangYong sales and marketing VP Johng-Sik Choi.

“The African continent, and especially South Africa, is integral to our overall global expansion strategy. [This year] is the starting point for our medium- to long-term strategy and we at SsangYong are determined to meet our goals, while expanding the global network and building brand recognition and trust. Our main objective is to become a global leader among manufacturers of sports-utility vehicles (SUVs).”

The Korean company is looking to grow the number of its African distributors from 15 to 19 by the end of next year, and cover all major African markets by 2016.

“The sales of SUVs and recreational vehicles in Africa have increased by more than 50% in the past two years, while South Africa remains a growth market in these segments,” adds Choi.

“The sales of Korean SUVs in South Africa have grown by 285% in this period, going from 4 800 units to 18 500 units.”

Choi notes that the quality of SsangYong products is on par with its Korean competitors such as Hyundai and Kia.

“We plan to introduce four improved SsangYong models in the South African market by mid-2013,” notes MSA CEO Ashok Thakur.

These include the Korando petrol-engined SUV and the new Actyon Sports pick-up, launched earlier this week, with two more models to be unveiled over the next 12 months, namely the restyled Rexton and the revamped Stavic.

SsangYong also has plans to introduce a further three new models onto the global market by 2016, including the XIV-2, which it describes as a premium crossover utility vehicle.

“The plan is to grow sales in South Africa from an anticipated 1 500 units next year to 10 000 units in 2016, when there will be seven model ranges. This will be aided by an increase in dealers, with the plan to lift the current number of 19 to 30 by the end of 2012,” explains Thakur.

Mahindra does not regard SsangYong as competition for its own brand, as it produces more hard-working utility vehicles for commercial purposes, says Mahindra & Mahindra international operations CE Ruzbeh Irani.

“SsangYong has enabled us to double the size of our overseas presence,” he adds. “It gives us immediate scale.”

THE NEW KORANDO AND ACTYON SPORTS

MSA this week introduced the first two SsangYong models to be sold locally under its watch – the Korando SUV and the Actyon Sports recreational bakkie.

The Korando is an upgrade of the current version, while the Actyon is a completely refreshed model.

More importantly, says Thakur, the price bands on both models have been lowered to ensure it draws more buyers and much-needed attention.

Both models come with a choice of diesel or petrol engines. Previously, these two SsangYong models were available locally only with diesel engines.

It is the introduction of the petrol engines that havs enabled Mahindra SA to drop the starting prices for these models by a significant amount.

The prices of the five-model Korando range go from R249 995 to R324 995, while prices for the three-model Actyon Sports line-up range from R269 995 to R319 995.

Previously, the Korando line-up started at just below R300 000.

The Korando range in South Africa now consists of five models, two with a 110 kW petrol engine and three powered by the 129 kW diesel engine.

Four of them have two-wheel drive and a six-speed manual gearbox, while the range-topping deluxe diesel variant has a six-speed automatic transmission, linked to a part-time four-wheel drive system, with the ability to lock the transmission in all-wheel drive when necessary.

There are three models in the Actyon Sports range. Two are part-time four-wheel drive, one with a petrol engine and the other a deluxe version powered by a two-litre turbo diesel engine. The third derivative is a two-wheel-drive diesel.

The petrol engine of 2.3 l delivers 110 kW of power and 214 Nm of torque, while the 2 l diesel puts out 114 kW of power and 360 Nm of torque.

The diesel engines are mated to a six-speed manual transmission, while the petrol variant has a five-speed gearbox.

Both the Korando and Actyon are backed by a three-year/100 000 km warranty and three-year/60 000 km service plan, with service intervals set at 15 000 km.

While SsangYong is hoping for a revival in South Africa and abroad with its new models and new Indian partner, MSA also harbours some its own ambitions.

It is hoped the addition of a second product range will be another building block in the strategy for the company to become a much bigger player in the South African market.

“We sold over 2 000 vehicles in 2011 and are targeting 5 000 unit sales this year, rising to 7 000 in 2013,” says Thakur.

Edited by: Creamer Media Reporter
© Reuse this

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
Updated 52 minutes ago South Africa increased its installed wind-energy capacity to above 1 GW last year, new Global Wind Energy Council (GWEC) figures show, making it the largest wind-energy producer in Africa, followed by Morocco, whose installed capacity stood at 787 MW in 2015. South...
Sappi CEO Steve Binnie
Updated 2 hours 11 minutes ago Pulp and paper manufacturer Sappi’s continued strong recovery has flowed into the 2016 financial year, with the group posting a surge in profit for the three months to December 31. Profit for the first quarter of the new financial year increased to $75-million –...
Randgold Resources CEO Dr Mark Bristow
Updated 2 hours 29 minutes ago The current stressed state of the mining sector was prompting governments and investors to work together to sustain the industry and make it deliver real value for all stakeholders, Randgold Resources CEO Dr Mark Bristow said on Wednesday. Speaking at the 2016...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
Updated 6 hours ago The use of an SMS that directs Gauteng e-toll users to pay outstanding fees is illegal, said the Organisation Undoing Tax Abuse (Outa) on Wednesday. Outa, which changed its name from Opposition to Urban Tolling Alliance recently, said it needed the public to...
Much Asphalt has completed the acquisition of SprayPave, following Competition Commission approval for the transaction, says Much Asphalt MD Bennie Greyling. Much Asphalt is South Africa’s largest manufacturer of asphalt products. The company’s acquisition of...
Article contains comments
The Roads Agency Limpopo's CEO has been dismissed and two of his colleagues suspended for alleged fraud, corruption, and collusion involving more than R40-million, the agency said on Monday. The trio allegedly flouted supply chain management policies, colluded,...
More
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149