Ssangyong Motor, part of the Mahindra Group, announced that the company achieved its highest revenue last year since its establishment, driven by global sales growth despite the overall sluggish demand in the automotive market.
The company reported its 2013 performance results as a total sales of 145,649 units including 63,970 units for domestic sales, 81,679 units for exports (including CKD) revenue of 3, 484.9 billion won operating loss of 8.9 billion won net current loss of 2.4 billion won.
This performance was achieved based on stable labor-management relations and the successful launch of new products that helped restore customer confidence. In particular, this is the strongest sales performance since 2002, despite the difficult business environment in both the domestic and overseas markets.
In the domestic market, sales of models like the Korando Turismo (launched in February 2013), and New Korando C (launched in August 2013) increased, which helped the company grow volumes by 34.1% compared to 2012, which is the highest growth rate in the industry.
In the overseas market, despite the difficult economic situation in most major markets, sales in the European and Chinese markets recovered thanks to the launch of the New Korando C (Export name: New Korando) and Korando Turismo (Export name: New Rodius) with improved fuel efficiency, and exports crossed the 80,000 units mark for the first time.
Annual revenue also grew for four consecutive years thanks to record high exports and strong sales growth in the domestic market, increasing by 21.3% over the previous year. It is the highest ever since the company was established, while the previous highest revenue was 3,435.5 billion won in 2005.
This sales growth has enabled Ssangyong Motor to reduce its operating loss in the past three years with its financial structure also improving substantially.
Operating profit was recorded during two quarters in 2013 resulting in an expectations for an annual profit, but in the fourth quarter, the rapid drop in the foreign exchange rate as well as the Supreme Court decision on the ordinary wage issue negatively affected the company’s financials resulting in an 8.9 billion won yearly operating loss.
Meanwhile, Ssangyong Motor will continue to boost sales of the Korando family brands to achieve its annual sales target of 160,000 units, and maintain its growth trend for the fifth consecutive year.
Lee Yoo-il, CEO of Ssangyong Motor, commented, “last year, the company achieved meaningful results despite the difficult external business environment in terms of sales and revenue growth and loss reduction,” adding, “this year as well, we will address and overcome its challenges to continue to firmly build the foundation for a turnaround.”