Saudi Arabian Company Gets Rights To Assemble Ssangyong Trucks
Ssangyong Motor, the Indian-owned South Korean SUV maker, has signed an agreement with a Saudi Arabia based company. The licensing agreement gives the company rights to locally assemble Ssangyong vehicles within the country from the year 2020.
Saudi National Automobile Manufacturing Company (SNAM) have reached an agreement with the Mahindra & Mahindra owned Ssangyong. The licensing of CKD assembly to the Saudi Arabia based company will allow it to provide training along with technical support. This agreement will also enable the company to localise key components.
The state-owned company, SNAM has affiliations with the Safari Group and is responsible for the plans dedicated to developing an automotive industry. The tasks come part of the Kindom’s long-term national development program.
The company has drawn up plans to set up an assembly plant in the Saudi Arabia ‘s Jubail. The assembly plant will have a production capacity of around 25,000 units in a year, and apart from this, even parts manufacturing capabilities will be built.
Mainly reliant on imports from various regions of the world, such as South Korea, North America, Europe and Japan, the Saudi Arabian vehicular market stands at about 1 million vehicles yearly. SNAM’s first stage for the long-term program is being considered as an aim of building a Ssangyong pickup truck at the Jubail city facility. Other models will follow if the first stage is properly executed.