India’s Mahindra Group chairman Anand Mahindra made it clear that the motor group would continue to invest in Ssangyong Motor as a strategic investor to revive the Korean carmaker’s former glory.

“It was not just a portfolio investment. It was not to acquire technology. Our investment was made with vision. ... (As a long-term investor), we want Ssangyong Motor to rise (again),” he said in Seoul on Tuesday.

“We have two missions in Korea. First, we will ensure the well-being of the Ssangyong Motor family members. Secondly, we will regain the former glory of the automaker,” he said during the launch of Ssangyong Motor’s new compact crossover SUV Tivoli. 

The Tivoli, rival to small SUVs like Renault Samsung’s QM3 and GM’s Chevrolet Trax in Korea, is the first new model developed since Mahindra & Mahindra, the auto-making arm of Mahindra Group, acquired Ssangyong in 2010. Ssangyong said the company invested 350 billion won ($324 million) for the joint development of Tivoli with M&M.

Pawan Kumar Goenka, president of M&M’s automotive and farm equipment sectors, who also leads the board of Ssangyong Motor, revealed the group’s mid-term investment plan.

“Ssangyong Motor will invest 1 trillion won in the next three years,” he said.

The Mahindra chairman also touched on the reinstatement of sacked Ssangyong workers, which has been an issue of contention for years.

He said the automaker must make a complete turnaround before considering the reinstatement of about 150 workers dismissed in 2009.

“The decision, made by short-term pressure, would put about 5,000 jobs in jeopardy in the long term,” Mahindra said. “Many challenges are still ahead for the turnaround of the company.”

He also expressed hope for the Tivoli’s success in Korea, which could solidify the firm’s turnaround and open up jobs for the former Ssangyong workers.

Ssangyong Motor set a vision to tap overseas markets with its new strategic global SUV model.

“As Ssangyong’s first compact crossover with 1.6-liter engine and on a platform that will achieve 100,000 units of annual production, Tivoli will be a solid driver for the firm’s turnaround and mid- to long-term development strategy,” Ssangyong Motor CEO Lee Yoo-il said.

Considering that more global consumers are favoring small SUVs with high performance, good fuel economy, practicality and price competitiveness, Ssangyong plans to take the Tivoli to the U.S. and European car markets.

The Tivoli, with a sensuous design, outstanding space utility for an SUV, and first-of-its-kind safety and convenience features, targets drivers seeking both style and practicality.

The car’s rigid body is made with 40 percent ultrahigh-strength steel, which makes it unique in the segment, the company said.

The gasoline-powered Tivoli model boasts a price advantage over its rivals, at between 16.35 million won and 23.47 million won.

The company will release a diesel-powered Tivoli this year and plans to reach sales of up to 100,000 units per year.

By Seo Jee-yeon (jyseo@heraldcorp.com)