April 27, 2024

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[THE INVESTOR] SsangYong Motor said on Feb. 27 it has signed a product licensing agreement with the Saudi National Automobiles Manufacturing Co. to enter the Saudi Arabian auto market in 2020.

Under the agreement signed last week, the automaker owned by Indian auto giant Mahindra & Mahindra will assemble and produce premium pickup truck Q200 in the country starting 2020. SsangYong hopes to boost the annual capacity to 25,000 units in the country. 

SNAM CEO Dr. Fahd S. Aldohish and SsangYong Motor CEO Choi Johng-sik sign a product licensing agreement in Seoul on Feb. 25.

SNAM, an automobile subsidiary of Safari Group, has secured a site of 1 million square-meter in the country’s auto cluster Jubail Industrial City to build a manufacturing facility for vehicles, as well as another 1 million square-meter land for automotive parts.

The two parties plan to cooperate on establishing a production facility for automotive parts inside the auto cluster, which will allow SsangYong’s suppliers to enter the Saudi Arabian market as well.

“This product licensing agreement with SNAM will provide a new base for our exports and help boost our global sales and future growth,” SsangYong Motor CEO Choi Johng-sik said in a statement.

“It is also significant as it will offer a growth opportunity for our suppliers as well as they participate in the establishment of an auto parts industrial cluster.”

By Ahn Sung-mi (sahn@heraldcorp.com)