Tariffs Disrupt Inchcape's Asia-Pacific Sales, Shares Plummet 10%.

Inchcape's Asia-Pacific sales have been impacted by tariffs, leading to a 10% drop in shares. The company, which operates in the automotive and distribution sectors, has seen its sales affected by the increased costs due to tariffs.

British car distributor Inchcape PLC (INCH.L) reported weaker-than-expected first-half results, with a 15% drop in organic revenue from the Asia-Pacific region, its largest market. The company attributed the decline to softer consumer demand and tariff-related disruptions, leading to a 10% drop in its shares [2].

Inchcape, which exports cars for global manufacturers across 40 countries, saw a 4% drop in its first-half adjusted pre-tax profit at constant currency, despite maintaining its annual earnings forecast. The company's adjusted operating profit for the period was 247 million pounds ($329.4 million), down 12% at constant currency from a year ago [2].

The company's CEO, Duncan Tait, highlighted that Indonesia, the Philippines, and Hong Kong were among the weakest markets during the period, with volumes in the premium segment slumping 40% year-over-year in Indonesia and 15% in the Philippines. Inchcape's distribution agreements with manufacturers such as Mercedes-Benz and Harley-Davidson in these countries were affected by the tariff-related uncertainty [2].

While Inchcape has not seen any direct material impact from U.S. President Donald Trump's tariffs, the company acknowledged some indirect disruption to supply-related logistics. However, Tait expressed optimism about trade deals struck by Japan and the European Union with the U.S., which could bring certainty to the industry [2].

Inchcape's shares, which had rallied nearly 20% in the past six weeks, traded down 7.6% at 739.5 pence by 0800 GMT. The company retained its annual forecast of higher earnings per share growth, attributing the resilience to its Accelerate+ strategy, which focuses on scale and diversification [3].

References:

[1] https://www.reuters.com/markets/europe/uk-car-distributor-inchcape-posts-first-half-profit-drop-maintains-annual-view-2025-07-29/
[2] https://www.reuters.com/markets/europe/tariffs-hit-inchcapes-asia-pacific-sales-shares-drop-10-2025-07-29/
[3] https://www.inchcape.com/h1-2025-results-executing-accelerate-strategy-fy-2025-guidance-reiterated/