SEOUL, Oct. 18 (Korea Bizwire) — SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., said Friday its net losses widened in the third quarter from a year earlier on weak sales.
Net losses for the July-September quarter deepened to 107.9 billion won (US$92 million) from 18.2 billion won a year earlier, the company said in a statement.
“Tougher competition with rivals and lower industrial demand were the main contributors to the widened losses in the third quarter despite the addition of three new models in the first half,” SsangYong Motor President and CEO Yea Byung-tae said in the statement.
The three models are the Rexton Sports Kahn SUV, the upgraded Tivoli SUV and the all-new diesel-powered Korando SUV. In August, the gasoline-powered Korando SUV was launched.
Operating losses also expanded to 105.2 billion won from 22 billion won during the same period. Sales fell 7.2 percent to 836.4 billion won from 901.5 billion won, the company said.
SsangYong posted operating losses for the 11th consecutive quarter. “The company will make drastic restructuring efforts for a turnaround and increase exports to improve its profitability,” the CEO said.
In the January-September period, net losses more than tripled to 185.5 billion won from 57.8 billion won.
Operating losses increased to 182.1 billion won from 60.7 billion won during the mentioned period. Sales rose 2 percent to 2.7 trillion won from 2.65 trillion won.
SsangYong sold 99,027 vehicles in the first nine months, down 2.4 percent from 101,436 units a year ago. The SUV-focused carmaker’s lineup includes the flagship G4 Rexton, Tivoli, Korando C and Korando Turismo.
Mahindra & Mahindra owns a 72.9 percent stake in the SUV-focused carmaker.