SsangYong the South Korea-based subsidiary of Mahindra and Mahindra has launched the Tivoli SUV with a petrol engine in Europe to help revive its plummeting sales.
The new petrol engine now displaces 1.2-litre and is aimed to jump-start the declining sales amidst the impact of COVID-19 crisis in the automotive industry.
Ahead of this, the Tivoli was available in Europe with 1.5-litre turbocharged petrol and a 1.6-litre diesel engine. Other models sold by the company include the flagship G4 Rexton, Korando and Rexton Sports SUVs.
In the January-March quarter this year, the company’s net losses deepened to $157 million due to disrupted production by the global pandemic and the disruption in production caused due to the same. This coupled with the lack of new models landed the company with poor vehicle sales from January to April declining 33 per cent to 30,952 units from 45,908 in the year-ago period.
The poor performance of the company also trickled down to its employees as it suspended some welfare benefits for employees in September last year and cut some of their wages and bonuses in December.
Mahindra first acquired 70 per cent stake in the carmaker in bankruptcy proceedings for 523 billion won as part of its globalization strategy. It now owns 74.65 per cent stake in SsangYong Motor after two rounds of rights issues worth 130 billion won since 2013.