Korean car maker Ssangyong Motor, a part of the USD 15.9 billion Mahindra Group, announced on April 26 that the company recorded sales of 31,265 vehicles (13,293 vehicles in the domestic market and 17,972 in exports including CKD, respectively), revenue of 751.6 billion won, (US$ 1= 1,109 KRW) an operating loss of 17.4 billion won, and a current net loss of 9.8 billion won in the first quarter of this year.
Despite the decline in demand due to a slow-down in the domestic and global economy, Ssangyong’s sales grew by 18.2% compared to the same period last year, revenue by 16.7%, and its operating loss was reduced by 43%.
Sales growth in the first quarter was largely driven by the Korando C, as well as the Korando Turismo, which was launched last February, and the domestic and overseas sales increased by 37% and 7.4% respectively compared to the same period last year to 13,293 and 17,972 vehicles.
Commenting on the results, Dr. Pawan Goenka, President, Automotive and Farm Equipment Sector said, “This performance shows that the turnaround of Ssangyong continues at a brisk pace. Our new and refreshed models are increasingly popular in the Korean and export markets and have helped to significantly lower our losses.”
Domestic sales, in particular, have been on an upward trend for three consecutive months since January recording 37% growth over the same period last year, which is the highest in the domestic automotive industry. This is largely thanks to the efforts to expand sales of facelifted models such as the Korando series, despite the sluggish economy and declining buying power that led to a contraction in the domestic automotive market over the same period in the preceding year.
Also, in exports, due to an aggressive entry into overseas markets and successful introduction of the Rexton W in the Indian market, Ssangyong Motor recorded a growth of 7.4% over the same period last year, and this growth trend is expected to continue with the planned increase in exports to Russia and higher production of SUV models.
By model, the Korando C and Korando Sports recorded sales of 12,254 units and 7,467 units respectively in both domestic and export markets to account for 63% of the total sales volume. The Korando Turismo also contributed to sales growth with bookings for 3,800 units on an accumulated basis for two months since its launch in February this year.
Supported by strong sales and revenue increases, the company’s profit and loss improved as the operating loss declined by KRW 13.1 billion to 17.4 billion won compared to 30.5 billion won in the same period last year. The current net loss was also reduced by 21.8 billion won to 9.8 billion won in the first quarter of this year from 31.6 billion won recorded in the first quarter of last year.