Korean-based SsangYong Motor Company and Indian manufacturer Mahindra & Mahindra have signed an agreement to jointly build a global sports utility vehicle.

Mahindra will acquire a 70% stake in SsangYong at a total cost of $463m, and is expected to be concluded by March 2011.

Ssangyong launched a new version of its Korando crossover 4×4 in September and the first shipment is due here in the New Year. It’s the first monocoque model from a maker that has always opted for a ladder chassis in the past.

There will be five models with a choice of two- and four-wheel drive, 6-speed manual and automatic and two trim levels. Power is from a new 2-litre 175hp diesel engine, which keeps CO₂ emissions down to 157g/km.

Towing capacity is 2t and there’s a five-year/250,000-mile warranty. Prices haven’t been announced yet.