MITSUBISHI Motors UK is increasing its focus further on SMEs with specialist training for dealers on how to work with local businesses.

Sales to SMEs account for around 30% of Mitsubishi’s UK sales with the L200 and Outlander key models for this market.

Managing Director Rob Lindley said the brand would also be focussing on a range of brokers who specialise in SME sales.

Mitsubishi has a branded contract hire offering through Shogun Vehicle Leasing.

Following an FY 2018-19 which saw significant growth in terms of sales, up 16% to 31,529, Lindley sees the current year to March 31 2020 as rather more challenging.

He said: “Following the launch of Eclipse Cross in January 2018 – giving us entry into a new segment – and the continued success of the L200 pick-up and Outlander PHEV, we were, for a time, the fastest growing car brand in the UK.

“This year we see the market down around 2% in terms of numbers but I am also seeing the characteristics of the market falling.

“The retail market is down around 7 or 8% while the company car sector is also under pressure as decisions are put off until there is more certainty in the market.”

Brexit is an issue because its impact on exchange rates.

Lindley said: “Logistics and imports are not an issue as we bring in cars from Japan and Thailand. But we buy in euros so a drop in the pound towards parity with the euro could be expensive for us.

“These costs will ultimately have to be passed on to the customer but that is not going to happen overnight.”

Lindley prefers a much more upbeat approach: “If there’s a transitional deal then we could see the pound lift against the euro and the dollar in which case our business looks a whole lot better.

“If there’s no deal with the EU and the UK can work out something quickly with Japan then we could find ourselves with an advantage.

“The problem we have right now is that it’s like driving with the hand brake on. We need some clarity so the brakes can come off.”

Next month Mitsubishi is launching the latest version of its popular L200 pick-up, a vehicle that accounts for almost one third of the brand’s UK sales.

Popular with retail buyers and SMEs the L200 is regularly number two in UK pick-up sales, hitting the top spot every now and again.

Lindley said: “Sales is only part of the story. The L200 is massively important in terms of parts and accessories. Rarely do we sell one without something being added, be it a top or a box, lining or tow bar.”

The Outlander, in PHEV and petrol form, is Mitsubishi’s next best UK seller although Lindley believes the model would be doing even better had the government stopped its PHEV grant.

He added: “I think the grant was stopped too soon because the market is not yet mature enough to switch to EVs, even with the BiK rating for pure electric reduced to zero.

“While this is attractive there are still infrastructure and supply issues that are holding back the market.”