Pendragon to be ‘Launch Partner’ for New Chinese Brand

Pendragon will be the lead launch partner for new Chinese brand BYD. The group has revealed the news in its first-half financial results for 2022.

The group has stated it is at an advanced stage of negotiations with the new all-electric Chinese entrant. Pendragon joins a growing number of UK retail groups seeking new franchises.

Paris Motor Show

Pendragon did not give details of the timing of the BYD launch or the number of sites it would operate. However, it is believed the Chinese brand may arrive in the UK next year.

BYD is now the world’s largest EV manufacturer and will be showcasing its range to Europe at the Paris Motor Show next month.

First half results for Pendragon were in-line with expectations with a profit-before-tax of £33.5 million on a turnover of £1.85 billion. The PBT figure was down from £35.1m in 2021. However, analysts have pointed out that latest figure did not include £8.3m of government support and £7m of incremental marketing spend that was in last year’s first-half results. Pendragon’s turnover in H1 2021 was £1.82bn.

Long Term Growth

Pendragon CEO Bill Berman said the market was challenging due to supply shortages in new and used plus inflationary pressures and he expected these to continue in H2 2022.

He added: “The recent announcement about the possible offer for the Group from a large international corporation demonstrates great interest in the strength of our strategy and the prospects for the Group overall. Whilst this proposal did not proceed, the Board considered that it merited discussion with our shareholders. We continue to believe strongly in our market-leading proposition and we remain well positioned to capitalise on the long-term growth opportunities and to navigate the near-term headwinds.”