SsangYong Motor Posts Profits during 2016 Q1-Q3 with Highest Sales Volume in 14 Years

• Company reports profits during 2016 Q1-Q3, with sales and revenue growth of 7.5% and 8.8% respectively
• Domestic sales (highest in 12 years) and exports (largest in 7 quarters) contribute to highest sales performance for first three quarters since 2002
• Company expects to turn to profit this year by increasing sales of upgraded models and operating efficient production system

Seoul, S. Korea, October 19, 2016: SsangYong Motor Company(CEO Choi Johng-sik; www.smotor.com), part of the Mahindra Group, today announced that for three cumulative quarters of this year from January to September 2016, the company has recorded sales of 111,683 units, revenue of 2.6279 trillion won, operating profit of 20 billion won and a net profit of 23 billion won.

This performance (through the end of Q3) was supported by the strong global sales of the Tivoli brand models, which grew by 39.7% year-on-year. YTD sales and revenue rose by 7.5% and 8.8% year-on-year respectively, resulting in the highest sales performance in 14 years. This is the first time in 9 years since 2007 that the company reports a profit during this period.

In the first three quarters of 2016, its domestic sales recorded 73,929 units with an increase of 6.8% year-on-year. These are the highest domestic sales in 12 years since 2004 (75,669 units) supported by the popularity of the Tivoli brand models which are growing at 37.6%. Its domestic sales performance has been improving for seven consecutive years.

In Q3 2016, SsangYong's exports achieved the highest quarterly sales in 7 quarters since Q4 2014 (15,278 units) thanks to expanding export of the Tivoli brand models. The company's January-September 2016 sales grew by 9% over the same period last year showing a healthy sales uptrend.

SsangYong posted a net profit for four consecutive quarters from Q4 2015 to Q3 2016 based on strong sales growth. It resulted in 20 billion won of operating profit and 23 billion won of net profit in the first three quarters of this year, indicating a steady turnaround since Q4 2015.

In Q3 2016, the company posted sales of 37,106 cars, revenue of 850.8 billion won, operating loss of 7.3 billion won and a net profit of 2.7 billion won.

Overall, Ssangyong's business performance and major indices such as sales, revenue and profit & loss are continuously showing an improvement since the turn to profit in Q4 2015.

The upgraded models including the Korando Sports 2.2, launched in Q3 with a stronger powertrain, as well as the 2017 Tivoli featuring high-tech safety technologies have just started to be sold globally, and the company expects to further sales growth in Q4 2016.

Choi Johng-sik, CEO of SsangYong Motor Company, commented, "Despite economic uncertainties including the depression in the emerging markets as well as domestic market, and the unstable exchange rate, the Tivoli brand continues to grow which helps the Company maintain its profitable trend," adding, "We will achieve a profitable year with strong sales of the face-lifted models and a more efficient production system."

2016 Q3 Sales

(in units)

	2016		2015		Yoy(%)
	Q3	YTD	Q3	YTD	Q3	YTD
Sales Valume	37,106	111,683	34,074	103,874	8.9%	7.5%
Domestic	23,233	73,929	23,833	69,243	-2.5%	6.8%
Export	13,873	37,754	10,241	34,631	35.5%	9.0%
(Full-CKD)	-	90	(1)	(223)	-100.0%	-59.6%

2016 Q3 P&L

(unit : billion won)

	2016		2015		Yoy(%)
	Q3	YTD	Q3	YTD	Q3	YTD
Revenue	850.8	2,627.9	819.5	2,415.3	3.8%	8.8%
Operating income(loss)	-7.3	20.0	-3.6	-57.7	Expanded loss	Turn to profit
PBT (loss)	2.7	23.0	-27.1	-81.1	Turn to profit
Net profit (loss)	2.7	23.0	-27.1	-81.1	Turn to profit

* Based on consolidated financial statement

2016 Quartlerly Sales and P&L

(unit : unit/bil. won)

Q1		Q1	Q2	Q3
Sales		33,666	40,911	37,106
P&L	Revenue	813.2	964.0	850.8
	Operating income(loss)	8.1	19.3	-7.3
	PBT	2.4	18.0	2.7
	Net profit	2.3	18.0	2.7

Vehicle manufacturers will have to give details about the emission and noise levels of each vehicle they produce

Come 1st of April 2017, manufacturers of all kinds of motor vehicles as also E-rickshaws and E-carts will have to give detailed declaration about the emission levels of the vehicle they have manufactured. Through a recent notification, the Ministry of Road Transport & Highways has amended Form 22 under the Central Motor Vehicles Act, 1989, through which manufacturers provide the Initial Certificate of Compliance with Pollution Standards, Safety Standards of Components Quality and Road –Worthiness certificate for all vehicles. Earlier, Form 22 only certified that the vehicle in question complied with the provisions of the Motor Vehicles Act and rules there under, including the relevant emission norms – Bharat Stage I/II/III etc.

From 1st April, 2017 however, the vehicle manufacturers will have to provide emission details for each vehicle in the revised Form 22 . The Form will include the brand, chassis number, engine number (motor number, in case of battery operated vehicles) and emission norms – Bharat Stage - IV / VI /Bharat (Trem) Stage-III/III etc of the vehicle and specify the levels of each pollutant like carbon monoxide, hydro carbon, non-methane HC, NOx, HC + NOx, PM etc for petrol and diesel vehicles and also sound level for horn and pass by noise values. The amended rules will apply to all vehicles run on petrol, CNG, LPG, electric, diesel and hybrid, including agricultural and construction vehicles, as well as E-rickshaws and E-carts. Form 22 will be issued with the signature of the manufacturer. In the case of E-rickshaws and E-carts, this Form will be issued with the signature of an authorized signatory of registered E-rickshaw or E-cart association. 

Hyundai Motor Company Opens New Plant in Cangzhou, China

Hyundai Motor Company Opens New Plant in Cangzhou, China 

 

• Cangzhou Plant is Hyundai Motor Company’s fourth manufacturing facility in China and has an annual capacity of 300,000 units

• Hyundai Motor Company aims to seize the initiative in China with its ‘New Plant, New Model and New Strategy’ approach

• Chinese strategic model ‘Verna Yuena’ to be produced at Cangzhou to expand market share further

• Cangzhou Plant creates 6,000 new jobs, benefitting the local community

                                                                  

October 18, 2016 - Hyundai Motor Company has opened its fourth manufacturing plant in China in the strategically-important city of Cangzhou in north eastern China. The new plant, Beijing Hyundai Motor Company Cangzhou Branch, has an annual capacity of 300,000 units.

 

At the plant’s opening, Hyundai Motor Chairman Chung Mong-Koo looked ahead to a 10 million cumulative sales target for the company in China, declaring a new vision and greater resolve for Hyundai Motor in the country. Chairman Chung said, “Completion of our Cangzhou Plant is the foundation that enables Hyundai Motor to make a new leap forward in China. Together, Hyundai Motor and Kia Motors can now produce up to 2.4 million cars annually in China with plants in operation at eight strategic Chinese sites.”

 

The opening of the Cangzhou manufacturing plant coincides with Hyundai Motor’s 14^th year of operation in China after it started exporting automobiles as Bejing Hyundai Motor Company (BHMC) on October 18, 2002. Recording exponential growth every year, BHMC achieved cumulative sales of eight million units in August 2015.

 

New Plant – ‘Cangzhou Plant’

By opening its new plant, Hyundai Motor Company sets out to seize the initiative in the incrementally-competitive Chinese market with its ‘New Plant, New Model and New Strategy’ initiative. Cangzhou Plant begins operations just four years after Hyundai Motor’s third plant opened in Beijing in 2012. Cangzhou Plant’s competitive edge lies in its strategic location. It is situated only 200km southeast of Beijing, aligned with existing parts suppliers and Tianjin Port, Hyundai Motor’s logistics base.

 

Built on a 1.92 million square meter site, with a floor space of 250,000 square meters, Cangzhou Plant is fully equipped with press, body, paint and assembly lines, in addition to an engine plant. The facility’s initial capacity of 200,000 units will manufacture strategically important small cars. It will expand to its maximum capacity of 300,000 units by 2018.

 

A smart and environmentally-friendly plant, Hyundai Motor’s Cangzhou facility uses the latest automation facilities in press, body, paint and assembly, as part of a flexible production system to ensure maximum efficiency and capacity utilization. In particular, the body line features a 100% fully-automated system that utilizes 299 robots. Also, Cangzhou Plant will implement a comprehensive recycling system, including recycling gas emissions, water and waste.

 

New Model – ‘Verna Yuena’

At the Cangzhou Plant opening ceremony, Hyundai Motor unveiled Verna Yuena, the first model to be produced at new plant. Displaying Hyundai Motor’s determination to penetrate the Chinese market further, Verna Yuena is a strategic model designed after careful consideration of the needs of Chinese customers.

 

Verna Yuena was developed specifically to satisfy the demands of Chinese customers as a smart urban family sedan that competes successfully in this price-sensitive sector. Its concept was first introduced at the 2016 Beijing Motor Show boating dynamic and refined design, the greatest interior space in the segment, plus the latest safety and convenience features.

 

Verna Yuena’s exterior design features Hyundai Motor’s ‘Modern Elegance’ approach with dynamic and refined styling, a large hexagonal grill, and ample interior space. The Cangzhou Plant will produce the new model with a choice of two engines, a 1.6-litre, 120ps unit and a 1.4-litre with 100ps. Verna Yuena comes with latest safety technology, including VSM (Vehicle Stability Management), TPMS (Tire Pressure Monitoring System) and also latest convenience feature such as band type smart key ‘H-Band’, smart trunk, heated front row seats, and a sunroof. Verna Yuena will also fully support Apple CarPlay and Baidu CarLife.

 

New Strategy – ‘Blue Melody’

Hyundai Motor also announced its future strategy in China under the name ‘Blue Melody’. Encompassing Hyundai Motor’s future direction, the name Blue Melody takes the first letters of Hyundai Motor’s ‘Blue’-branded products and services: Blue Ecommerce, Blue Link, Blue Outlet, Blue Drive and Blue Youth.

 

The Blue Melody strategy focuses on customer satisfaction through systematic customer management and differentiated service. Through Blue Ecommerce, Hyundai Motor will utilize big data to enhance convenience for customers by establishing an integrated customer-tailored platform as part of its digital marketing.

 

In addition, Blue Link provides a new customer experience by applying Apple CarPlay and Baidu CarLife on Hyundai Motor flagship models. With Blue Outlet, Hyundai Motor will continue to enhance its sales competitiveness in key regions across China.

 

Blue Drive continues its proven success in enhancing competitiveness of eco-friendly cars especially in China where competition is intensifying in this key area of focus. Last but not least, Blue Youth strives to improve the company’s brand image by providing creative experiences for people in their 20s and 30s in China.