Ssangyong Motor in comeback mode, aims to up sales by a quarter

Ssangyong Motor Co, in which India’s Mahindra & Mahindra Ltd is a majority shareholder, aims to expand vehicle sales volume and revenue by a third in 2013 from this year by launching five improved models and lifting overseas sales.

The money-losing car maker is seeking a comeback after emerging from court-led restructuring in March and following its acquisition by Mahindra, India’s top sport utility vehicle maker. But doubts persist over whether Mahindra will invest heavily in Ssangyong to develop new models and revive the struggling car maker.

“Ssangyong’s product line-up is outdated and limited, and it remains to be seen whether Mahindra is committed to pouring money into developing new products and expanding Ssangyong’s dealership networks,” said NH Investment & Securities analyst Lee Sang-hyun.

More from Fwire

BCCI earned more than Rs 2,400 crore in IPL 2022, reveal documents Eight Russian judokas barred from world championships after Ukraine boycott

[caption id=“attachment_87885” align=“alignleft” width=“380” caption=“Reuters”]  [/caption]

Ssangyong Motor said in a statement that it aimed to sell 160,000 vehicles in 2013, compared with a 2011 target of 121,000. The car maker also said it targeted revenue of 4 trillion won ($3.5 billion) in 2013, from a projected 3 trillion won for this year.

Ssangyong added that it planned to roll out four new models by 2016.

Shares in Ssangyong Motors, which have fallen about 30 percent this year, finished up 0.2 percent on Tuesday. The KOSPI ended up 0.94 percent.

Mahindra last year agreed to buy Ssangyong, South Korea’s smallest car maker, for $464 million, giving the Indian automaker access to advanced technologies and overseas markets.

Ssangyong, the maker of Actyon and Rexton SUVs, exported 60 percent of its output last year to markets including Russia and Latin America.

Ssangyong widened its operating loss in the April to June period this year despite an increase in sales.

Reuters