Ssangyong Motor said it had sold its main service centre in Guro, Seoul, as it faced a liquidity crunch as losses continued to mount.

The automaker, majority owned by Mahindra & Mahindra, said it sold the service centre to local asset management firm PIA for KRW180bn (US$147m) in a sale and lease back deal to help raise funds.

The company earlier this year said it was looking to sell non core assets to generate liquidity after several years or mounting losses.

The global COVID19 pandemic had aggravated an already bad situation for Ssangyong, with its global sales in the first five months of 2020 falling by 32% to 39,206 units.

Ssangyong reported a net loss of KRW193.54bn (US$157m) for the first quarter of 2020, the 13th consecutive quarterly loss for the company.

In April, Mahindra & Mahindra agreed to inject KRW40bn (US$33m) into Ssangyong to help it stay afloat through the global pandemic.

But this was far short of the KRW230bn (US$187m) in fresh capital Mahindra said was needed to return Ssangyong to profitability over a period of three years.