Ssangyong Motors records tall half year sales

Ssangyong Motors was a debt ridden Korean car maker that was under court supervision last year. That was before Mahindra & Mahindra acquired 70% stake in Ssangyong Motors, now Sangyong Motors has recorded the highest half year sales since 2007. While taking over Ssangyong, Mahindra proposed to strengthen its product pipeline. And that’s just what happened. Ssangyong Motors sold a total of 55,873 units at the end of the first half of 2011, which is 53% over the sales of the same quarter from last year. Out of the total units sold 20,246 units were sold in Korea while the other 35,627 CKD units were exported. The total revenue generated from the sales was KRW 1349.2 billion. A significant jump in sales of Ssangyong Motors has come from the launch of the Korando C. 

Ssangyong Motors has decided to give its employees a one time bonus to acknowledge their contribution to the growth in sales, it has also increased their wages and salaries. However, the appreciation of the South Korean Won against the US Dollar has resulted in a sharp rise in cost of production which combined with the increased employee costs has reflected in a operating loss of KRW 75.3 billion in the first half of the calendar year of 2011. This compared to a loss of KRW 48.1 billion for the same period last year may get you confused, but the loss from this year includes higher operating costs as well as the costs of developing new products. 

After Ssangyong Motors was acquired by Mahindra & Mahindra at the end of last year and exiting court receivership in March this year, its sales have received a new boost. Ssangyong Motors sold 10,000 units every month for the four consecutive months after March 2011.Backed by its majority shareholder Mahindra & Mahindra, Ssangyong Motors plans to develop new products and search for new markets while bringing the cost of production down. 

The President and CEO of Ssangyong, Mr. Lee Yoo-il concluded on high note by saying, “Our sales volume and revenue growth in the first half of this year, coming on the back of a high base last year is heartening and demonstrates the renewed enthusiasm within the Company as well as the faith in the brand posed by customers.”