SsangYong sales up 18% in Q1 of 2013, operating loss down 43%

April 30, 2013: The Mahindra Group-owned Ssangyong Motor has announced that it has registered sales of 31,265 vehicles (13,293 domestic and 17,972 exports including CKD), revenues of 751.6 billion won (Rs 3,700 crore), an operating loss of 17.4 billion won (Rs 86 crore), and a current net loss of 9.8 billion won (Rs 48 crore) in the first quarter of this year.

The company says, despite the decline in demand due to a slowdown, both in the South Korean and global economies, its sales grew by 18.2 percent year on year, revenues were up by 16.7 percent, and its operating loss down by 43 percent.

Sales growth in the first quarter was largely driven by the Korando C as well as the Korando Turismo, which was launched last February. Domestic and overseas sales of these models rose by 37 percent and 7.4 percent respectively, year on year, 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.” The company is aggressively targeting exports and in India, it rolled out the Rexton W last year. It is now looking to grow in China, where it recently showcased the Rexton W along with six other vehicles at the Shanghai Motor Show, marking the company’s first step toward entering the high-end Chinese market which is witnessing a smart growth in SUV sales. Also on display was the midsized SUV concept SIV-1, which was first unveiled at Geneva Motor Show in March.

The Rexton W is going to be made available with one of three powertrains -- two diesels and a petrol engine -- throughout its sales network across China. SsangYong has targeted sales of 10,000 vehicles in China this year and plans to expand its network of 80 dealerships to 100 dealerships by the end of 2014.