Korean utility vehicle manufacturer Ssangyong Motors, which was acquired by Mahindra and Mahindra (M&M) in 2011, continued to report a decline in exports in February, in continuation of a trend that begun in May last year.
Depreciation of the Russian rouble (Russia is the largest export market for Ssangyong), tepid demand in other countries and an appreciation of the Korean won are some of the factors that led to Ssangyong’s exports falling.
In February, the number of cars exported by Ssangyong decreased by 10% over the preceding month to 3,152 units.
Between May and February, the South Korean carmaker’s exports have declined by a sharp 53.68%.
In rupee terms, Ssangyong’s revenues represented 23% of M&M’s consolidated turnover in FY14.
Analysts say that the devaluation of the rouble as a result of sanctions imposed on the country by European nations and the US impacted Ssangyong’s vehicle sales in the country.
Total exports in the calendar year 2014 stood at 72,011 units. The loss-making manufacturer’s Korando C (an SUV) was its most successful product in the international market with 37,863 units exported in 2014 and 3,479 units exported in January 2015.