In the fourth quarter of 2022, SsangYong Motors recorded sales of 33,502 units, generating revenue of 1.0339 trillion won and an operating profit of 4.1 billion won according to provisional separate financial statements.

This shift to profitability in Q4, despite the industry’s ongoing challenges such as semiconductor supply issues, is significant as it marks the first quarterly profit for SsangYong Motors in 24 quarters since Q4 2016 (10.1 billion won).

The appointment of Chairman Kwak Jae-sun on September 1 last year played a crucial role, as he directly managed operations and worked towards restoring customer trust following the conclusion of the company’s rehabilitation process in November, laying the groundwork for stable profitability in the future.

Sales continued to rise, supported by improved models such as the New Rexton Sports & Khan, as well as the new Torres, resulting in four consecutive quarters of sales growth. Q4 sales reached an all-time quarterly high, 50% higher than the same period last year.

This improvement in quarterly results contributed to an overall sales increase of 113,960 units for the year, a growth of 34.9% compared to the previous year. Revenue on a separate basis rose by 41.7% to 3.4242 trillion won, while operating losses decreased by 54.9% to 117.5 billion won year-over-year.

Additionally, the Q4 and annual provisional results based on separate financial statements have been estimated under Korean International Financial Reporting Standards, with more finalized results still pending. This information is provided to assist investors.

Looking ahead, Chairman Kwak Jae-sun plans to bolster exports and enter new markets as part of his growth strategy announced during his inaugural speech.

Following the groundbreaking ceremony for a local assembly plant in Saudi Arabia in January last year, production for the KD project, aimed at producing 30,000 units annually, is set to kick off in its first phase later this year. Furthermore, discussions are underway with partners to re-enter the Vietnamese market for the first time in seven years, aiming to export a total of 300,000 CKD units over the next five years, starting with 1,000 complete vehicles this year.

Chairman Kwak Jae-sun stated, “Torres is receiving a positive response in the market, showing growth in both domestic and export sales, which has allowed us to break free from chronic losses as part of the KG Group family. As Torres makes its official debut in overseas markets, we will expand the sales market and strengthen our global strategy, while improving our production system to boost volume and significantly enhance our financial structure.”

Lee Sang-jin daedusj@autodiary.kr