Inchcape will stop distributing KGM vehicles in New Zealand, with the company confirming it has jointly agreed with the South Korean automaker to end its local distribution agreement.

A final date hasn't yet been announced, with both companies working through a transition period.

The move means KGM – formerly known as SsangYong – will need a new distributor or another business model if it is to continue operating in New Zealand.

"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," an Inchcape spokesperson said.

"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."

Inchcape says it's working closely with KGM to ensure a smooth transition, with support for customers, dealers, and business partners remaining a priority.

The distributor also stressed the decision won't affect existing customers.

All current vehicle orders will be honoured, while KGM's five-year, unlimited-kilometre warranty, Assured Service Pricing, and Pre-Paid Service Plans will continue unchanged.

Inchcape acquired the brand in 2023 through its purchase of Great Lake Motor Distributors, which also brought LDV into its portfolio. The Korean brand was rebranded from SsangYong to KGM in March 2024.

KGM currently offers four models in New Zealand: the Torres, Torres Hybrid, Rexton, and Musso. The brand's website lists nine dealerships nationwide.

However, KGM's dealer network has been shrinking in recent months, particularly in Auckland. Former dealerships at East Tamaki, Drury, and North Shore have closed, while Henderson has also been preparing to shut its doors, leaving Winger Greenlane as the brand's only remaining Auckland sales outlet.

What happens next for KGM in New Zealand remains unclear.

Across the Tasman, KGM operates through a factory-owned business with its own head office and parts distribution centre in Melbourne, raising the possibility it could seek a new New Zealand distributor or establish a direct local presence.

Despite dropping KGM, Inchcape says it remains committed to the New Zealand market, continuing to distribute brands including Subaru and LDV, with a lineup spanning passenger cars, SUVs, utes, and vans powered by petrol, hybrid, electric, and other powertrains.

The announcement comes as Inchcape trims its wider Australasian operations. On the same day it confirmed its KGM exit, the company also announced it would end its distribution partnership for Peugeot in Australia following a mutual agreement with Stellantis.

Peugeot will remain on sale in Australia, with Stellantis expected to announce a new distribution arrangement in due course.

KGM dumped by distributor: Inchcape drop South Korean brand after three years in NZ

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