H1 sales grow 4.7 % YoY with the highest domestic sales in 16 years, and the highest-ever H1 revenue in the company's history
Expanded investment in new products results in increasing depreciation, operating costs, and losses
SsangYong to pursue sales increase and substantial growth with its strengthened product lineup
SsangYong Motor Company (CEO Byung-Tae Yea; www.smotor.com/en) announced that the company sold 70,277 units, posted revenue of 1,868.3 billion won, an operating loss of 76.9 billion won, and a net loss of 77.6 billion won in the first half of this year.
The company's H1 sales and revenue grew 4.7 percent and 6.7 percent respectively, thanks to a sales increase based on the launches of three new cars. However, its H1 losses have expanded due to an increase in investment to secure future growth engine and an increase in operating costs amid intensified competition in the market.
SsangYong's H1 domestic sales grew 8.6 % YoY driven by consecutive launches of new models, recording the highest sales in 16 years since H1 2003 when its sales recorded 72,758 units. Thanks to strong domestic sales, the total growth in H1 global sales 4.7 % YoY.
The company's revenue also rose 6.7 %, the highest performance in its history, thanks to the increase in domestic sales and changes in product mix.
SsangYong Motor introduced three new models in the first half of this year, including the Rexton Sports KHAN (export:Musso Grand), brand-new Korando, and face-lifted Tivoli equipped with the company's first 1.5 Turbo gasoline-powered engine.
However, despite the increase in sales, the company witnessed an operating loss of 76.9 billion won due to an increase in depreciation resulting from expansion of investment in new products and technology development to secure future growth engine. Sales costs also increased due to intensified market competition.
In Q2 2019, the company's sales and revenue increased 1.6 % and 0.2 % QoQ respectively, driven by the successful launches of new models, but its operating losses amounted to 49.1 billion won, more than the previous quarter.
SsangYong Motor Company explained that current losses occurred in the process of normalizing the business by increasing the investment in new products and technology to secure future growth engine. As a result of such investments, the company is pursuing an increase in both sales and revenue by continuously launching new products.
The company plans to improve sales and profitability in the H2 2019 based on aggressive sales strategies and strengthened customer events, along with the launch of the gasoline-powered Korando.
Byung-tae Yea, CEO of SsangYong Motor Company, commented, "Despite the unfavorable market situation, the company has achieved its highest H1 revenue in its history based on the launches of three new models," adding, "In the second half of this year, we will further expand sales and boost meaningful growth with additional lineups."