Inchcape, a global car distributor operating in around 40 countries, is looking to divest its Russia-based assets. The company’s Russian subsidiary runs about 20 showrooms in Moscow and reported revenues of £750 million in 2021, roughly one tenth of the group’s global turnover. The holding company cites the events surrounding Ukraine as the main reason for winding down its presence in Russia.
“Given the current circumstances, ownership of the Group’s Russian assets is no longer reasonable,” a spokesman said. “As a result, we have begun reshaping our business in Russia in collaboration with our partner automakers.”
Until now, Inchcape auto centers in Russia have continued operating without disruption.
“The company intends to divest its business, but it remains obligated to service existing customers,” the holding company explained on a helpline. (citation: socialbites.ca)
Inchcape first entered the Russian market in 2006 and acquired a controlling stake in Moscow dealer Musa Motors in 2008. Today, Inchcape runs 19 dealerships in the Moscow region, carrying brands such as BMW, Mini, Rolls-Royce, Jaguar Land Rover, Exeed, Volvo, Toyota, Hyundai, Genesis and Mitsubishi.
According to the SPARK-Interfax database, the Belgian offshore Inchcape International Group BV is listed as the sole participant of Inchcape Holding LLC. Under Russian accounting standards, 2020 showed a net profit of 118 million rubles on a turnover of 8.3 billion rubles. The Russian subsidiary has not released updated figures since then. (citation: SPARK-Interfax)
Media coverage first tied Inchcape to a possible exit from Russia as early as 2015. In 2021, the British group acquired the St. Petersburg-based Russian conglomerate KlyuchAvto for £70 million, adding four dealerships representing Toyota, Lexus and Audi brands. (citation: media coverage)
Before the ongoing geopolitical and economic shifts, the estimated value of the remaining Inchcape centers was around €350–€400 million.
Independent automotive consultant Sergey Burgazliev notes that buyers in today’s climate may expect a substantial discount. He told socialbites.ca that demand could be strong for a portfolio including Hyundai, Toyota, Mitsubishi and Chery, brands that have not halted operations in Russia. He suggests Inchcape could attract large dealer groups lacking those brands, pointing to benefits like established dealer contracts and prime Moscow locations. (citation: socialbites.ca)
On the other side, a potential buyer might use such a deal to expand its brand presence and deter rivals from entering, Burgazliev adds. He believes Inchcape may not have fully anticipated selling at market value to a major buyer, and that only a few parties are seriously interested in Russia. As a result, the deal could fetch a 35–40% discount. (citation: Burgazliev interview)
Denis Migal, director of the Fresh Auto dealership network, argues that the most plausible path for the British group is a nominal sale to its own Russian administration. He doubts a genuine sale will occur. Many shareholders could join the board from within the holding, enabling Inchcape to present a clean break from Russia while eventually stepping back. When conditions improve, expansion could resume, signaling a pragmatic exit from the market. The alternative would be to wind down operations and liquidate assets. (citation: interview with socialbites.ca)
Past investments by Inchcape in Russia have yielded profits, and the present loss is framed as forgone earnings. Migal notes that the sale could hinge on transferring franchises at the property and fixed-asset value only. He adds that no Moscow holdings are currently positioned to buy the Inchcape business, and brand prospects plus dealer revenue remain uncertain. Elevated loan rates also dampen any potential purchase. (citation: source)