It survived the Asian financial crisis more than a decade ago, and bankruptcy more recently, now South Korea’s Ssangyong Motor is on a growth path after recording its highest ever yearly sales since 2002 in 2013 with a total of 145,649 units.
These included 63,970 domestic sales and in the second quarter the company recorded its first quarterly net profit for six years, and it expected to finish 2013 in the black for the first time since 2007.
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The Financial Times noted that Ssangyong now holds 6% of the overall Korean market, compared with nearly 70% for Hyundai and its affiliate Kia, and sells 16% of all SUVs sold in the country.
Ssangyong’s return to health, under Indian parent Mahindra & Mahindra, is also a rare example of a successful foreign acquisition in South Korea where takeovers have been hampered by volatile labour relations.
Mahindra has invested heavily since taking a majority stake in 2011, earmarking US$900m for product development over the next four years. This has given the company the resources to develop a new fleet of large passenger vehicles that has helped to restore the company’s reputation at home.
In overseas markets, the company sold over 80,000 units for the first time, up 11.9% year on year thanks to increased sales in key countries such as Russia and China. Its previous record was 74,350 units in 2011.
PRODUCT EYE: SsangYong reloads with new Turismo
