Scoop! Aisin auto transmissions for SsangYong, Mahindra

Aisin AW Co of Japan will supply Mahindra & Mahindra (M&M) with its next-gen six-speed automatic gearbox for future M&M and SsangYong models. The upcoming SsangYong compact SUV (code: X100) will be the first recipient of this transmission, followed by the Mahindra XUV500.  

“Yes, we are going to install a six-speed automatic, coming in January 2015, and Mahindra is also considering that same gearbox for the XUV500. So, in terms of volume, that is great for us and we can save some money,” said Y I Lee, president and CEO of SsangYong Motor Company.

This deal marks the first true cooperation between M&M and SsangYong for joint sourcing. “The volumes for Mahindra alone were too small for Aisin to bother about us,” says an M&M source who added, “It was only additional volumes of SsangYong that interested them in our business.”

M&M has been scouting for an automatic transmission supplier ever since it ended its cooperation with Drivetrain Systems International in mid-2012. This Australian company, which supplied transmissions for the Scorpio automatic and SsangYong models, was acquired by Geely of China. The disruption in supplies was the main reason for the delay in the introduction of an automatic XUV500 that customers have been hankering after since the XUV500 was launched in late 2011.

Along with SsangYong, M&M then began talks with Hyundai for supply of auto transmissions.

This latest Aisin auto ’box is a conventional torque converter but comes with sophisticated hardware and electronics to improve efficiency by reducing ‘spin loss.’ Aisin says its new generation of automatic transmissions is much lighter and has quicker gearshifts too.

By the time the XUV500 Auto is launched in mid-2015, the SUV will be four years into its lifecycle. Hence, it’s safe to expect M&M to link the XUV500 Auto with a face-lift.

A delay in sourcing the auto transmission could enable other players in the segment to get ahead of the XUV500 in the auto race. A Renault Duster auto is expected in early 2015 and Tata Motors, which showcased the six-speed auto Aria at Geneva in 2013, could launch it here by the end of 2014. With the latest Aisin auto ’box mated to the capable 2.2-litre mHawk motor, the XUV500 could have good potential in several international markets as well.

Interview with Yoo-Il Lee, president & CEO, SsangYong Motor

Apart from joint sourcing of components, what are the other areas of cooperation you have established with M&M?

There are many areas. For example, we didn’t have an ERP system; so we set one up with the help of Mahindra in a very short time. Another is the tie-up with Mahindra’s finance companies for the financing of our cars, even for the domestic market.

Could we see common engine architecture between SsangYong and M&M?

With the previous engines, we cannot create a synergy. But in the future, when we develop new engines, our two R&D teams can sit together and work on the same architecture for engines and transmissions.

What are the interesting international markets for SsangYong?

Our biggest market is Russia and Chile as well. China is next. Western Europe is slowing down but we are considering the US market and studying it to enter with the X100 SUV.

M&M has found it hugely challenging to enter the US market and faced legal issues too. Could SsangYong be a back-door entry for the company?

Yes, I heard that too! We know how difficult the US market is and we will see how best to penetrate it.

HORMAZD SORABJEE

 Photograph: Aisin AW Co’s six-speed automatic transmission.