Ssangyong Motors reported a wider loss due to faltering exports, currency headwind and increased depreciation costs, adding gloom over the struggling Korean car industry with its bigger rival GM Korea teetering on the brink of bankruptcy.

The carmaker owned by India’s Mahindra & Mahindra said its operating loss stretched a yawning 101.81 percent on year to 31.3 billion won in the first three months of this year on a consolidated basis. First-quarter sales gained 2.54 percent to 808.8 billion won, but net loss widened by 145.79 percent to 34.2 billion won over the same period due to stronger Korean won and increased marketing costs from the release of new models.

Ssangyong Motors shares closed Monday down 1.97 percent at 4,980 won ($4.66).

The company sold 30,664 cars in the first quarter, down 10.4 percent from a year ago. Domestic car sales remained solid thanks to strong orders for new model Rexton Sports, but exports tumbled by 32.4 percent.

Domestic sales jumped 81.9 percent, driven by SUV and Rexton brands including G4 Rexton and Rexton Sports. Backorders for Rexton Sports launched early this year already hit 20,000 units, raising hope of recovering a strong cash cow as it did with Musso Sports in the past.

The company said it will add more labor to meet its back orders this month and diversify export markets.

By Kim Jung-hwan and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]