In a recent interview with DF Sud, a regional version of the Chilean newspaper Diario Financiero focusing on corporate and economic news from all Latin America, Duncan Tait, Inchcape Group Chief Executive, shared that Latin America has become a strategic driver for the business and said the region is even a benchmark for the wider Group: “The way that business operates is how I would like all our businesses around the world to operate.”
During the conversation, Duncan highlighted the growth of the Americas region over the last nine years and discussed key markets in the region including Chile, in which we have a 25% market share, alongside Peru, Colombia and Ecuador. Duncan also discussed plans to expand into northern South America, where he confirmed that “there are active discussions for new opportunities.”
The big ambition for 2030: to grow
Although the business in Latin America (covering 14 countries, not including Mexico or Brazil) is already significantly consolidated, Inchcape has ambitious goals for the future - “my aspiration is for us to double the size of the company in the coming years,” said Tait.
Globally, the automotive industry sells around 90 million vehicles per year and of that total, Inchcape participates in a target market of 10.8 million units. Duncan explained that our goal is to reach 10% of that figure by 2030.
In the Americas, where we have a portfolio of more than 40 brands and average market share for markets in the region is already around 10%, there is still room to grow by combining new Distribution contracts with organic growth and increased acquisition in the region.
Duncan said: “I believe we still have a lot of room to grow, and that could mean doubling the size of the Americas region over the next decade. There are still more contracts to be won and more room to increase our market share.”
“New energy is unstoppable”
Inchcape’s recent Drivers of Change study revealed that people in countries of Latin America have a positive view of electric vehicles; however, only a third are considering buying one the next time they purchase a car.
Duncan shared with DF Sud that although “the transition to new energy vehicles is absolutely unstoppable”, mass adoption is not progressing as quickly as expected with the pace dependent on factors such as government regulation, incentives, infrastructure and the availability of Distributors with a solid portfolio – all of which vary by market.
Despite this, Duncan highlighted notable progress in some countries including Chile which leads the region with the largest market share in new energy vehicles, accounting for 44% of Inchcape’s portfolio. It is followed by Bolivia, which has by far the highest penetration of new energy vehicles at 73%, and also Colombia, Peru and Costa Rica to a lesser extent.
“The transition will continue to move forward, but at different rates” Duncan concluded.