Chinese ute and van maker seems set to continue - but sales arrangement unclear.

CHINESE commercial vehicle specialist LDV has become the second brand to be dropped by Inchcape, the decision to part ways coming three weeks after the United Kingdom-headquartered, multinational automotive investor announced intent to cease representing Korea’s KGM.

That leaves just Subaru as an Inchcape asset here and has raised speculation about whether LDV, which according to today’s announcement could well be set to continue, will subsume into MG New Zealand.

Both brands belong to China’s Shanghai Automotive (SAIC).

MG NZ already sells one model, the U9 large utility, that also represents as an LDV (as the Terron 9). It has also expressed keenness to venture into commercial vehicle sales, but lacks a van range.

Comment from MG NZ has been sought.

Announcement of the parting of LDV and Inchcape comes after months of industry speculation about the strength of their unity.

LDV only became an Inchcape asset here in August 2023.

Before that, it was represented by a New Zealand operation, Great Lake Motor Distributors Group.

Registrations this year up to end of June came to 462 units. Last year 1405 new LDV utes and vans were plated. And in the period beginning January 1 2023 to end of June this year, 3831 vehicles were registered.

On July 2, a day after announcing it was ceasing marriage with KGM, Inchcape was asked by this publication about whether it had any further announcements. At which point it reaffirmed continued connection to LDV.

It said then: “LDV remains part of our New Zealand portfolio, and we continue to work closely with our OEM partners to support their objectives in this market.”

In today’s media share, 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, the decision has been made to end the distribution partnership for LDV in New Zealand, with the final date to be confirmed following a transition period.

“The OEM (so, LDV) will communicate its future distribution arrangements in due course.

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

“During the transition period, service support remains unchanged and customers are encouraged to contact their local LDV dealership for stock availability, with current customers orders delivered as planned.

“Inchcape remains committed to the Australian and New Zealand markets with our brand portfolio offering a range of vehicles designed to meet the needs of local customers.”

LDV has been a subject of regional interest, due to a court proceeding in Australia in respect to corrosion challenges with popular products also sold here. No such action has occurred here.

Distribution arrangements are also unlinked. Representation across the Tasman is with Ateco Automotive.