KG Mobility achieves major turnaround in 7 years
KG Mobility has achieved a major turnaround in 2023 with a surprising triple-digit operating profit for the first time since 2016, buoyed by robust sales of its diverse SUV lineups — such as Torres and Rexton —the company said Wednesday.
According to the automaker, the firm attained record annual sales of 3.74 trillion won ($2.8 billion) last year, up 9.3 percent from the previous year. Its operating profit also soared to 12.55 billion won during the same period on its improved product mix and enhanced brand image after formerly SsangYong Motor changed its corporate name to KG Mobility in March 2023, the company said.
The once-cash-strapped Korean automaker raised hopes for its stronger earnings recovery this year by continuously improving its SUV-focused product mix. The company reiterated its plans to place a more strategic focus on increasing sales for its pure-electric mid-sized SUV, the Torres EVX, this year.
“Placing Torres EVX at the forefront
of our major sales lineup, we are going to diversify our lineup by launching a coupe version of the Torres in the third quarter of this year, and the Torres electric pickup truck in the fourth quarter,” a spokesman for the automaker said.
KG Mobility recently decided to cut the price for Torres EVX by two million won, after a government subsidy for the vehicle fell to 4.57 million won this year from 6.6 million won a year ago. The automaker said that the firm pushed for the temporary discount for the model to alleviate the lingering financial burden on customers for electric vehicles (EV). But the promotional event will only last until the end of this year.
“Our overall profitability for each vehicle sale improved on falling material costs,” the official said. “KG Mobility will continue to enhance its profitability by diversifying its competitive SUV lineup for customers.”