Ssangyong posts revenue of 1,596 billion won in H1 2015
- Ssangyong’s Q2 sales increased by 12.1% compared to Q1, and operating loss decreased by 41.8%, showing improvement
- Ssangyong recorded highest growth rate in domestic market driven by Tivoli, achieving highest H1 sales since 2004
- Performance improvement expected in H2 based on strengthened lineup including Tivoli diesel and 4WD versions in addition to Tivoli gasoline
Ssangyong Motor (CEO Choi Johng-sik; www.smotor.com), part of the Mahindra Group, today announced that during H1 2015 the company reported total sales of 69,800 units comprising 45,410 units in the domestic market and 24,390 units (including CKD) in exports, revenue of 1,595.9 billion won, an operating loss of 54.1 billion won and a net loss of 53.9 billion won.
Due to strong demand for the Tivoli, the company recorded the largest growth rate in the industry, leading to domestic sales growth of 36.6% to 45,410 units compared to the same period last year, which is a record high in eleven years since H1 2004 (54,184 units).
In particular, the Tivoli’s monthly sales recorded over 3,000 units for three months in a row since April 2015, creating a sensation in the compact SUV market. A total of 18,000 units of Tivoli were sold in H1 2015 which is driving the company’s sales growth in the domestic market.
Its exports declined by 40.5% over the same period last year due to priority supply to the domestic market amid the deteriorated export situation in Russian and other new emerging markets. However, a recovery is expected steadily as the company has begun shipping the Tivoli diesel to strategic overseas markets including the European and Chinese markets from June 2015.
Despite the growth in the domestic market in H1, the declining exports contributed to the sales and revenue decline by 6% and 7.7% respectively from a year earlier, resulting in the H1 P&L showing an operating loss of 54.1 billion won.
Nonetheless, the performance in Q2 improved over Q1 performance as sales grew by 12.1% quarter-on-quarter and revenue grew by 9.9% which helped reduce operating loss by 41.8% to 19.9 billion won.
Choi Johng-sik, CEO of Ssangyong Motor, commented, “Helped by the Tivoli, which has created a sensation since its launch, we recorded the highest growth rate in the industry in the first half of this year,” adding, “In the second half, the company’s profitability will be improved based on the strengthened product lineup including the Tivoli diesel and 4WD model in addition to the Tivoli gasoline.”