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SsangYong Motor Posts Operating Loss Due to Reduced Exports
Despite Domestic Growth
SsangYong Motor Posts Operating Loss Due to Reduced Exports
  • By Jung Min-hee
  • July 31, 2017, 03:15
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SsangYong Motors’ brand new G4 Rexton has led the sales to increase by 5.5% and revenue by 14.5%), respectively, in the second quarter compared to the previous quarter.
SsangYong Motors’ brand new G4 Rexton has led the sales to increase by 5.5% and revenue by 14.5%), respectively, in the second quarter compared to the previous quarter.

 

SsangYong Motor Company, part of the Mahindra Group, on July 28 announced that the company has sold 70,345 units, posting revenue of 1.691 trillion (US$1.522 billion), operating loss of 22.1 billion won (US$19.8 million), and net loss of 17.9 billion won (US16.1 million), respectively, in the first half of this year.

Despite the continued growth in domestic sales, its total sales in the first half of this year and revenue have decreased 5.7% and 4.8%, respectively, year-on -year due to the reduction in exports.

However, its brand new G4 Rexton has led the sales to increase by 5.5% and revenue by 14.5%), respectively, in the second quarter compared to the previous quarter.

SsangYong’s domestic sales in H1 of this year increased by 5.5% compared to H1 of 2016, and the company posted sales growth for 8 years in a row. It also recorded its highest ever domestic sales in 13 years since H1 of 2004 (54,184 units).

This growth in domestic sales covered the losses in the exports, minimizing the decrease in sales and revenue in H1 of 2017. The company’s exports in H1 decreased by 29.3% over the same period of last year due to sluggish global market demand.  

In H1 of 2017, the company posted an operating loss of 22.1 billion won (US$ 19.8 million) and a net loss of 17.9 billion won (US$16.1 million) due to the decreased sales, and sharp drop in exchange rates.