SsangYong Motor Company, part of the Mahindra Group, announced on October 19 that for three cumulative quarters of this year from January to September 2016, the company has recorded sales of 111,683 units, revenue of 2.6279 trillion won (US$2.36 billion), operating profit of 20 billion won (US$18.0 million) and a net profit of 23 billion won (US$20.7 million).
This performance (through the end of Q3) was supported by the strong global sales of the Tivoli brand models, which grew by 39.7% year-on-year. YTD sales and revenue rose by 7.5% and 8.8% year-on-year respectively, resulting in the highest sales performance in 14 years. This is the first time in nine years since 2007 that the company reports a profit during this period.
In the first three quarters of 2016, its domestic sales recorded 73,929 units with an increase of 6.8% year-on-year. These are the highest domestic sales in 12 years since 2004 (75,669 units) supported by the popularity of the Tivoli brand models which are growing at 37.6%. Its domestic sales performance has been improving for seven consecutive years.
In Q3 2016, SsangYong’s exports achieved the highest quarterly sales in seven quarters since Q4 2014 (15,278 units) thanks to expanding export of the Tivoli brand models. The company’s January-September 2016 sales grew by 9% over the same period last year showing a healthy sales uptrend.
SsangYong posted a net profit for four consecutive quarters from Q4 2015 to Q3 2016 based on strong sales growth. It resulted in 20 billion won (US$18.0 million) of operating profit and 23 billion won (US$20.7 million) of net profit in the first three quarters of this year, indicating a steady turnaround since Q4 2015.
In Q3 2016, the company posted sales of 37,106 cars, revenue of 850.8 billion won (US$765.7 million), operating loss of 7.3 billion won (US$6.6 million) and a net profit of 2.7 billion won (US$2.4 million).
Overall, Ssangyong’s business performance and major indices such as sales, revenue and profit & loss are continuously showing an improvement since the turn to profit in Q4 2015.
Choi Johng-sik, CEO of SsangYong Motor Company, commented, “Despite economic uncertainties including the depression in the emerging markets as well as domestic market, and the unstable exchange rate, the Tivoli brand continues to grow which helps the Company maintain its profitable trend,” adding, “We will achieve a profitable year with strong sales of the face-lifted models and a more efficient production system.”