7:59 am, April 14, 2026
KGM is on the hunt to add more dealers to its network, with the Korean brand highlighting a ‘straightforward’ and low-cost opportunity for dealers seeking a new franchise partner.
Speaking on the latest episode of the Car Dealer Podcast, KGM Motors UK sales director Clive Messenger explained how the company currently has ‘just over 65 dealer partners’ across the UK, with ‘good geographical coverage’, but acknowledged there are still gaps it is keen to fill.
‘There are some potential areas or territories that we would like to fill – namely kind of the Yorkshire area, sort of Cambridge and Essex, East Anglia area and the south-east,’ Messenger explained, noting that the latter remains particularly challenging ‘because of the costs of running businesses’.
Despite this, KGM – formerly SsangYong – believes its proposition is attractive, especially in a market where many dealers are reassessing their brand partnerships amid growing competition and shifting volumes.
‘I think with us the key point to note is that one, we’re really easy to do business with,’ Messenger told podcast hosts Jon Reay and James Baggott. ‘We don’t have a whole raft of mandatory requirements for a dealer partner. We don’t expect gin palaces.’
Instead, KGM is focusing on a more pragmatic approach to retail standards.
‘What we do ask our dealer partners to do is have a facility that is accommodating to customers – somewhere that you would like to go and do business. Is it clean? Is it tidy? Is it warm? Is it welcoming? That’s really all we ask for.’
Messenger also emphasised the financial accessibility of its franchise model.
‘There’s no real cost to the franchise… it’s fairly straightforward and easy to do,’ he said.
KGM believes its offering could be particularly appealing to dealers representing legacy brands that are experiencing declining volumes.
‘Our brand and the offering can work quite well with dealers of some of the legacy brands where they’re starting to see volumes eroded,’ he said. ‘We could complement possibly their line-up but then share some of the overheads and some of those costs and add some value into that business.’
Messenger stressed that KGM measures success less by scale but more by engagement.
‘The dealers that have the real success are the ones where they live and breathe their business, they know their community, they know their customers and they provide value to people. That value isn’t in terms of money off – that value is in terms of what they do to help their customers.’
He added: ‘We’ve got some of our dealer partners that are achieving six, seven, eight per cent local market share. In fact, we’ve got two dealers that are in double digits. We’re a less-than-half-of-one-per-cent market player and we’ve got dealers getting double digit market share.’
Messenger went on to say that KGM is open to discussions with a wide range of potential partners, including used car retailers considering a move into franchised operations. However, it warned that the transition requires a shift in mindset.
‘The difference between being a used car dealer versus a franchise operator is different,’ he said. ‘If there’s an acceptance that you have to do things a little bit differently then all good. It’s about the right people rather than pigeonholing people.’
Ultimately, KGM believes its growth ambitions will be supported by the right partners rather than rapid expansion at any cost.
The next 12 months will be an exciting time for the Korean brand formerly known as SsangYong, which adopted its KGM name in 2024 after being acquired by KG Mobility.
The new Musso EV pick-up is already arriving in select KGM dealerships, while a new diesel Musso is waiting in the wings. KGM is also readying replacements for the Rexton large SUV and Tivoli small SUV, meaning the company will soon have a completely revitalised model range that will be less than 18 months old.
The Car Dealer Podcast can be listened to on Spotify and other streaming platforms, or watch above
