SsangYong Motor Q2 losses widen on weaker demand

SEOUL, July 29 (Yonhap) -- SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., said Monday its net losses widened in the second quarter from a year earlier on weak sales.

Net losses increased to 51.5 billion won (US$44 million) in the April-June quarter from 5.4 billion won in the year-ago period, the company said in a statement.

"The cost of developing new vehicles was in part reflected in the second-quarter results and tougher competition with rivals drove up marketing costs," a company spokesman said over the phone.

Operating losses deepened to 49.1 billion won from 7.5 billion won during the same period. Sales fell 0.7 percent to 935 billion won from 942 billion won, the company said.

In the January-June period, net losses almost doubled to 77.6 billion won from 39.6 billion won over the cited period. It sold a total of 70,277 vehicles in the first half, up 4.7 percent from 67,110 units a year ago, the company said.

Mahindra & Mahindra owns a 72.9 percent stake in the SUV-focused carmaker.

kyongae.choi@yna.co.kr
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