Vehicle Sales

SsangYong sees profits in second quarter

SsangYong sees profits in second quarter
SsangYong.jpg

SsangYong, the South Korean vehicle manufacturer, which is part of the Mahindra Group, is making very good progress in increasing sales and improving its financial performance. 

SsangYong sold a total of 69,460 units in the first six months of 2013 – 29,286 in the domestic market and 40,174 exports (including CKD). There was a profit in the second quarter which resulted in a reduction in the first half operating loss by more than 70%.

This performance shows that SsangYong’s turnaround is proceeding smoothly and the company has recently started a second shift at its plant in Korea to meet growing demand for its SUV models. It recently concluded wage negotiations without a labour strike for the fourth consecutive year.

SsangYong’s first half sales volume grew by more than 22% over the same period in 2012 and was the best performance since the company sold 69,755 units in 2007. SsangYong was the only domestic automobile company in Korea to record growth in the first half of 2013, when the domestic market was sluggish.

Although the local market declined by 2.6% compared to the first six months of 2012, SsangYong was able to increase its domestic sales by 34%, mainly due to the popularity of the new Rodius and Actyon Sport. Exports also showed substantial growth with a 15.4% increase in volume, on the back of strong demand for SsangYong vehicles in Russia and Latin America.

As a result the company recorded a profit of R55-million in the second quarter, compared to a loss of R190-million in the second quarter of 2012.  This was the first quarterly profit to be reported by SsangYong since the third quarter of 2007, except for a windfall of about

R1-billion in the third quarter of 2010 from the sale of idle assets as part of the financial rehabilitation process.

“The combined effort of increasing sales of our face-lifted models and the synergy with the Mahindra Group has ensured profitability and help turn around the company in the second quarter,” said SsangYong Motor CEO Lee Yoo-il. “We will continue to further increase our sales as we introduce new and improved models which will also help our profitability.”

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