▪ Sales and revenue grew more than 26% in Q2 and 22% in H1 compared to the same period last year,
setting a new record since 2007.
▪ Company reports second quarter profit thanks to sales increase, which reduces first half operating
loss by 70.5%.
▪ Efforts to achieve a turnaround are proceeding smoothly with the introduction of a two-shift system
in Assembly Line 3 and conclusion of wage negotiations without strike for fourth consecutive year
Ssangyong Motor (CEO Lee Yoo-il; www.smotor.com), part of the Mahindra Group, announced that it sold 29,286 units in the domestic market and exported 40,174 units (including CKD), selling a total of 69,460 units in the first half of 2013. It reported revenue of 1,660.6 billion won, operating loss of 14.3 billion won and a net loss of 3 billion won after tax. The operating loss of 14.3 billion won is 70% less than the previous year’s H1 loss of 48.6 billion won.
Ssangyong Motor’s first half sales volume and revenue grew by over 22% compared to the same period last year, resulting in another record performance since H1 of 2007 when the company sold 69,755 units.
Ssangyong Motor was the only automotive company that recorded growth among the domestic automakers despite the sluggish domestic automotive market in the first half. During this period the market saw a 2.6% decline in demand compared to the previous year. Ssangyong was able to increase sales with the newly launched Korando Turismo and other brands in the Korando family recording a growth of over 34% in the domestic market.
In exports also, Ssangyong was able to continue with the sales growth trend by recording a 15.4% increase over the same period last year due to increased volume in overseas markets including Russia, Latin America and India.
In the second quarter, Ssangyong recorded sales volumes of more than 12,000 units for three consecutive months largely due to the success of the Korando Turismo, to record sales of 38,195 units.
As a result, the company recorded a net profit of 6.2 billion won in the second quarter, compared to a loss of 21.5 billion won in Q2 of the previous year, signaling a steady improvement in the company’s profit and loss structure.
Ssangyong reported a quarterly profit for the first time in six years since the third quarter of 2007 except for the third quarter of 2010, when there was a profit on account of gain from disposal of idle assets of 112.5 billion won during the rehabilitation process.
Ssangyong Motor also started a two-shift system in Assembly Line 3 in May to actively meet the growing demand for SUVs, and it successfully concluded its wage negotiations on July 25th without strike for the fourth consecutive year, demonstrating stable labor-management relations in the company, based on which Ssangyong is fully concentrating on production and sales to achieve a turn around.
CEO Lee Yoo-il of Ssangyong Motor said “the combined effort to increase sales of our face-lifted models and the synergy with Mahindra has ensured profitability and helped to turn around the company in the second quarter.” He added “we will continue to further increase our sales with the introduction of improved models such as the New Korando C in the second half which will help improve our profitability.”