Industry Trend Analysis - Ssangyong To Help Develop Domestic Autos Manufacturing - APR 2017
BMI View : Ssangyong Motor ' s plan to locally manufacture vehicles in Saudi Arabia will act as the first stepping stone in the development of the country ' s domestic vehicle manufacturing. By being one of the early entrants into the nascent car production industry, the automaker will be able to grow its production and sales footprint in the country , helping it capture more market share .
In February 2017, South Korean automaker Ssangyong Motor announced a licensing contract for auto parts with a Saudi firm that would allow it to locally manufacture vehicles in Saudi Arabia from 2020. According to the agreement, Ssangyong would provide technological assistance to Saudi National Automobile Manufacturing Co. (SNAM) in building an auto production factory, localising car parts and training technicians, the company said. SNAM is the first auto firm established as part of Saudi Arabia's long-term 'Vision 2030' national development plan that includes fostering the car industry.
Ssangyong plans to assemble its premium pickup trucks at the new facility in the Saudi city of Jubail, with other models set to follow if the first stage is successful. The goal is to be able to manufacture 25,000 vehicles annually through gradual production increases.
|Pick-up In Car Demand Bodes Well For Ssangyong Investment|
|Saudi Arabia - Passenger Car Sales, Units|
|e/f = BMI estimate/forecast. Source: OICA, BMI|