Ssangyong Motor Posts Operating Loss of 93.2 Billion KRW in Q3... 15 Consecutive Quarters of Deficits

[Asia Economy Reporter Suyeon Woo] SsangYong Motor recorded an operating loss of 92.3 billion KRW in the third quarter of this year, marking 15 consecutive quarters of deficits.

On the 26th, SsangYong Motor announced that its operating loss for the third quarter of this year was 93.2 billion KRW, with sales revenue of 705.7 billion KRW. Although the scale of the operating loss decreased compared to the previous year, sales revenue fell by 15.6% year-on-year. The net loss for the period was 102.4 billion KRW, similar to last year, and third-quarter sales dropped to 25,350 units compared to the previous year.

SsangYong Motor explained that despite the decline in sales and revenue compared to the same period last year due to the market downturn caused by the COVID-19 pandemic, the effect of cost-cutting measures helped reduce the scale of the operating loss.

They also emphasized that continuous launches of special models by product, diversification of online purchasing channels tailored to the COVID-19 spread trend, and the effect of non-face-to-face marketing have led to three consecutive quarters of sales growth this year. Exports, which had sharply declined due to COVID-19, have also recorded three consecutive months of growth since June, following the resumption of economic activities in key strategic markets.

SsangYong Motor Tivoli Air

SsangYong Motor expects that if the market situation improves with the ongoing new model launches and the export recovery trend continues, the effect of fixed cost reduction through self-help efforts will be maximized. Having introduced three special models this year, SsangYong Motor plans to increase global sales through differentiated marketing strategies, including launching the Tivoli Air via home shopping?the first in the domestic industry?earlier this month, and releasing the All New Rexton through an online showcase in November.

SsangYong Motor stated, "Sales are showing signs of recovery through the launch of special models and aggressive marketing strategies," adding, "In the fourth quarter, we will achieve both sales expansion and profitability improvement through the launch of new lineups such as the Tivoli Air and All New Rexton."