Mahindra and Mahindra-owened Ssangyong is developing its first personal contract purchase (PCP) scheme as it looks to double sales in the UK this year.
The PCPs will be launched over the next few days with residual values underwritten by Ssangyong UK.
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Managing director Paul Williams said: “Private sales across the industry are being driven by PCPs and we have struggled in the past with residual values (RVs), largely because we have had so few vehicles on the road and used models tended to go straight back into the dealer network rather than out through auction so there is little historical background.
“We will guarantee that with RV which gives dealers a much stronger selling story and it will also help us to retain customers who bring their vehicle back for a trade in.”
Ssangyong is continuing to slowly build sales in the UK where it delivered 833 vehicles last year. This year it has a target of 1,500 and Williams said the brand’s USP is not just lower prices but also filling niches.
“If you look at the Turismo we introduced last year to replace the Rodius, there is very little like it on the market. It is a full seven seater and it has the option of part time four wheel drive. There are people out there who need a big people carrier but find they are becoming increasingly limited for choice.”
Helping to fill the niches will be Ssangyong’s X100 SUV which comes into the range below the Rexton and was described by company president and chief executive officer Lee Yoo-il as a “game changer” for the brand.
With the market for smaller size SUVs burgeoning, Lee said the new model would be launched in 2015 in all major markets including Korea, western Europe, the US and China.
He said he expected the car to go a long way to filling capacity at Ssangyong’s Korean factory which is capable of producing 250,000 cars a year. Last year it assembled 145,000, which was a 20% increase on 2012.
Lee added: “That the was highest growth rate of any South Korean manufacturer and this year we will be looking to sell 160,000.”
