Q3 Operating Loss Reduced
SsangYong Motor Co., part of India's Mahindra Group, announced on Oct. 26 that it sold 25,350 units, posted revenue of 705.7 billion won, an operating loss of 93.2 billion won, and a net loss of 102.4 billion won in the third quarter of 2020.
The company's operating loss has decreased thanks to the ongoing cost-cutting efforts, despite a decrease in sales and revenues compared to the same period last year resulting from the market downturn caused by coronavirus pandemic.
Sales and revenues declined 26.2 percent and 23.8 percent year on year in the third quarter, respectively, due to a decline in exports and demand caused by reinforced social distancing policy in Korea amid re-spread of coronavirus.
However, Q3 sales has shown upward trend for the third consecutive quarter this year, recording the highest performance this year boosted by the continuous release of special editions, diversification of online sales channels and non-face-to-face marketing programs.
In particular, the company’s Q3 exports showed a clear recovery with an uptrend for three consecutive months since June, following the resumption of economic activities in major strategic overseas markets.
Despite the coronavirus pandemic, the company’s sales recovery and effective self-rescue plans for welfare benefit and labor cost reduction have led to a reduction in both fixed costs and operating loss YoY and QoQ.
If the market conditions get better and export recovery trends continue with the launch of new models, the effects of reducing fixed costs through self-rescue plan is expected to expand further having positive impact on its financial structure in the future.
In particular, SsangYong Motor, releasing three new special models, launched the Tivoli Air through home shopping channel for the first time in Korea at the beginning of this month, and will launch the All-New Rexton through online showcase in November. As such, SsangYong Motor plans to expand global sales through differentiated marketing strategies.
SsangYong Motor explained that the company’s sales are showing a recovery thanks to the launch of special models and aggressive marketing strategies. The company will continue to increase sales and improve profitability in the 4th quarter of this year by introducing new product lineup such as the Tivoli Air and All-New Rexton.