No word from Korean marque about what comes next in New Zealand.

AFTER just two years together, Korean brand KGM and its New Zealand distributor Inchcape have announced intent to part ways.

Statistics suggest they achieved 721 registrations during their union; about one third the stated ambition expected during the tenure period.

What happens now for the make, the reborn entity of SsangYong, in this market is unclear.

KGM’s hopes here always rested on the Torres sports utility, a five-seater medium model it first released in petrol and fully electric form when starting business here in May of 2024.

Just months ago it swung to the Torres Hybrid, with a self-sustained petrol-electric powertrain.

Delivering in front-drive and positions at $49,990 in base and $54,990 in a higher-provisioned Ultimate specification, that vehicle has been the subject of a high-profile advertising campaign.

The brand also continued with the petrols, also in front and all-wheel-drive, but it appeared the electric, which at release cost $66,990, had gone.

British automotive investor Inchcape has long run Subaru NZ but added China’s ute and van maker LDV n 2023, before taking on KGM in 2024.

In its announcement today, Inchcape said: “As part of Inchcape's standard approach to portfolio management, we continuously review our partnerships to ensure we have the right portfolio of brands for our business aligned with our strategic growth objectives.

“As a result, we have made the joint decision with our OEM partner, KGM, to end our distribution agreement for the KGM brand in New Zealand, with the final date to be confirmed following a transition period.

“We are working collaboratively … to ensure a smooth transition for the brand, with a focus on supporting customers, dealers, and partners.”

In its statement, Inchcape said it remains committed to the local market, “with a brand portfolio designed to meet the needs of a wide range of New Zealand consumers spanning passenger and sports utility vehicles, utes and vans, offering both traditional internal combustion engines, as well as hybrid and electric powertrains.

It said all current customer orders will be honoured and delivered as planned. “KGM’s five-year/unlimited kilometre warranty, Assured Service Pricing and Pre-Paid Service Plans will remain unchanged.”

When KGM started here, it promised more products than SsangYong could offer and also said it would prioritise electro-mobility, a place Ssangyong had barely begun to explore before falling into bankruptcy.

Its use of drivetrain and battery technology from BYD was seen as being a powerful signal for a make that intended a big switch from its previous diesel dedication.

As well as Torres, KGM continued with rebadged models from the Ssangyong era (Rexton, Korando in the main) and set itself a target of achieving the 2000 units within two years.

That count would have been four times the 2023 volume achieved by Ssangyong, which was in NZ for almost two decades.