SsangYong Motor eyeing first quarterly operating profit in six years

Torres, the mid-size SUV, leads SsangYong Motor's performance after its introduction in July 2022. [SsangYong Motor]

SsangYong Motor expects to generate its first quarterly operating profit in six years, in part thanks to brisk sales of the Torres SUV introduced in July.

The Korean automaker announced 4.1 billion won in operating profit in the fourth quarter compared to a 21.3 billion won operating loss in the same period in 2021, according to an earnings guidance released by the company Wednesday.

"We were able to swing to operating profit backed by a sales hike, despite the lingering economic uncertainties such as the semiconductor shortage," Ssangyong said in Wednesday's statement.

Quarterly revenue was up 1.34 trillion won, an increase 58 percent on year.

Neither segmentation nor net profit were provided in the guidance.

The company simply sold more cars. SsangYong sold 33,502 cars in the fourth quarter of last year, up 50 percent on year and its best fourth quarter performance.

Sales on improved models such as the New Rexton Sports Khan and the new Torres SUV, introduced in July 2022, contributed to its four consecutive quarterly increases in the number of cars sold.

A total of 22,484 Torres were sold, 30 percent more than its initial target.

In full 2022, SsangYong Motor gained 113,960 orders, up 34.9 percent from 2021.

This turnaround heightens expectations for SsangYong's revival, especially after the automaker was acquired by KG Mobility-led consortium in October.

SsangYong plans to target new markets with knock downs (KD, or delivering cars in parts and assembling them at the destination) to increase exports this year. Overseas markets will provide more opportunities as the domestic market shows clear limitations in growth.

First-step assembly production will begin in Saudi Arabia from the end of this year following the assembly plant's groundbreaking ceremony on January 2022. The KD project with Saudi's SNAM is anticipated to produce 30,000 cars annually.

The carmaker aims to export 90,000 New Rexton Sports Khan and 79,000 All New Rexton in the first seven years of SNAM's production.

Negotiation with a Vietnamese company on a KD project is ongoing in an attempt to reenter the Vietnamese market after seven years since its withdrawal in 2016. If the Vietnamese KD project goes as planned, SsangYong will sell 1,000 finished cars this year and reach up to a total of 300,000 orders within five years.

"Torres' domestic and overseas sales looks good, and SsangYong broke away from its chronic deficit structure
after becoming KG's familiy," said Kwak on Wednesday.

BY LEE SOO-KI [sohn.dongjoo@joongang.co.kr]