Wednesday, August 14th, 2013
In a phone interview with the Korean Economic Daily on the 13th, Pawan Goenka, president of Mahindra's automotive & farm equipment sectors, said, "We are working with Korean companies like Samsung SDI, POSCO, Mando Corp., and Delphi Korea to raise the share of Korean-made parts. In order to improve the quality and save cost, we are thinking about establishing joint ventures with Korean parts suppliers in India."
Already Mahindra is manufacturing the drive shaft in partnership with Hyolim Industrial, a Korean auto parts maker. The drive shaft, or propeller shaft, is a mechanical component for transmitting torque and rotation, used to connect other components of a drive train that cannot be connected directly because of distance. Hyolim will also work with Mahindra Sona, an auto component supplier, for technology cooperation. The Korean company has supplied parts for the 11-seater Rodius recreational vehicle since 2004, with 90.3 billion won in sales last year.
The main reason Mahindra is expanding relationships with Korean suppliers is to enhance the quality competitiveness of both Mahindra and Ssangyong vehicles while cutting cost by taking advantage of Korean suppliers' technological excellence.