▪The deal involves exporting a total of 16,000 units of the Kyron from 2010 to 2014, with 2,000 to 4,000 units annually.
▪With this contract, Ssangyong will have a bridgehead to advance into the ASEAN market
▪KD export to Vietnam is the second largest to Russia, raising expectations to increase export sales volume by reinvigorating emerging markets.
Ssangyong Motor Company (www.smotor.com) announced on April 11th that it had closed a deal to export a total of 16,000 units of the Kyron in CKD Complete Knock Down form until the year 2014.
With this deal, Ssangyong will export a total of 16,000 units of the Kyron in CKD form, starting from 2,000 units this year, followed by 2,500 in 2011, 3,000 units in 2012, and 4,000 units in 2013 and 2014 respectively. This will also generate additional value to the company including technology assistance fees by dispatching manpower to assist local assembly lines.
The cooperation with Vinaxuki, Ssangyong's Vietnamese partner that has focused mainly on trucks and other commercial vehicles, will allow Ssangyong Motor Company to enter into the SUV market and to achieve its goal for increasing sales based on the new local production and sales base.
It is especially meaningful that Ssangyong Motor Company has secured a bridgehead to advance into the emerging ASEAN market by increasing sales volume in Vietnam as well as in neighboring countries.
The vehicle market in this country has recently shown some rapid growth, sending a positive signal for future sales. A total of 180,000 units of automobiles, including 20,000 SUVs, were sold in Vietnam last year.
Ssangyong successfully closed a deal with Russia's Sollers last January on exporting the Rexton and Kyron. By adding another successful CKD contract with Vietnam, Ssangyong Motor Company will be able to accelerate its effort to increase the export volume especially in the emerging markets.
The expansion of an overseas CKD operation can beinterpreted asI deleted proof that the company has regained credibility in overseas markets. Backed by this, the company has laid out an ambitious export plan I deleted this year of 45,000 units, 243% higher than last year's export sales.
"Cutting a CKD export contract with Vietnam is a significant event since it will provide us with a bridgehead to make an inroad into the emerging Southeast Asian markets," said Lee Yoo-il, a Legal Trustee. "There will be more and more vehicles with Ssangyong badges running on the roads of Latin America, the Middle East and Asia as we pioneer new markets in these regions,"he added.