Mahindra Group-owned Korean carmaker, which sold 155,844 units including 85,821 Tivolis, records net profit of 58.1 billion won or Rs 339 crore.
20 Feb 2017 | 6637 Views | By Autocar Pro News Desk
Having posted net profits for five consecutive quarters, the Mahindra Group-owned SsangYong Motor Company has reported profits for the full year 2016.
The Korean carmaker has sold its highest volume in 14 years, posting record sales in 2016, thanks to its highest-ever sales in Q4, 2016. This performance has ...
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Having posted net profits for five consecutive quarters, the Mahindra Group-owned SsangYong Motor Company has reported profits for the full year 2016.
The Korean carmaker has sold its highest volume in 14 years, posting record sales in 2016, thanks to its highest-ever sales in Q4, 2016. This performance has helped the Korean carmaker turn profitable once again after nine years, since 2007.
In Q4 2016, sales rose consistently with global sales of the Tivoli brand crossing the 9,000-units mark in December for the first time since launch. With this strong sales performance, the company posted for the first time revenues of over one trillion won (Rs 5,835 crore) during a single quarter since the establishment of the company.
Q4 sales volume increased by 8% and revenue by 2.7% over Q4 2015, and the company reported its highest quarterly profit for 2016, with a net profit of 19.4 billion won (Rs 113.14 crore)
In calendar year 2016, the company sold a total of 155,844 units and posted revenue of 3.6285 trillion won (Rs 21,122 crore), an operating profit of 28 billion won (Rs 163.38 crore), and a net profit of 58.1 billion won (Rs 339 crore), turning to profits after nine years, since 2007.
Tivoli brand the growth driver
While SsangYong sales rose by 7.7% over 2015 to record the best-ever performance in 14 years since 2002, revenues too were the highest ever, growing by 7% over the previous year. SsangYong’s growth was mostly driven by the Tivoli brand of SUVs whose sales grew sharply by 34.7% year-on-year to 85,821 units, giving a new impetus to the company’s performance.
Choi Johng-sik, CEO of SsangYong Motor, said: “Last year, the company was able to recover its market share thanks to the Tivoli and escape from the loss-making situation by posting profits for the first time in nine years. This year, we will successfully launch the large-sized premium SUV Y400 and expand our product line-up to further increase our sales and continue the profitable trend.”
In a tweet, Dr Pawan Goenka, managing director of Mahindra & Mahindra, said: "Delighted that SsangYong turned profitable first time in 9 yrs. My salute to the SsangYong team for their hard work in last six years."
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