The automotive industry is experiencing accelerated change across its supply chain – from OEMs to dealers and consumers. While headlines often focus on the challenges of transitioning to new energy vehicles (NEVs), tariffs, regulatory shifts and changing consumer preferences, the evolving landscape presents growth opportunities for those ready to innovate and adapt.
In this landscape, OEMs and distributors recognise the growing importance of reaching customers efficiently, data-driven decision-making, and sustainable solutions. A focus on high-growth markets, technological agility, and sustainability is more critical than ever for long-term success.
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Recent commentary on our industry has been dominated by the potential impact of tariffs on its complex and interconnected global supply chain.
What’s clear is the role of independent automotive distributors, such as Inchcape, has never been more crucial in helping OEMs navigate complexities in markets to unlock new growth opportunities.
An industry in transformation
The transition to battery electric vehicles (BEVs) has not been linear, with societal, industry, and customer challenges differing across markets. Some markets, often supported by government incentives, have embraced BEVs, while others face challenges to widescale BEV adoption and currently favour hybrids and internal combustion engine (ICE) vehicles. For OEMs, the high cost of research and development adds financial pressure, while regulatory shifts and geopolitics can create further complexity.
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By GlobalDataConsumers increasingly seek seamless omnichannel purchasing, more sustainable options, and enhanced connectivity. They also want a greater understanding and reassurance of how electrification fits their lifestyle and mobility needs. Meanwhile, Chinese OEMs are reshaping the global landscape, requiring other OEMs to adapt at pace.
The increasingly critical role of distributors
Inchcape has a front-row seat to this transformation as the distribution partner for over 60 OEMs in nearly 40 markets, from the Philippines to Chile.
Rising costs in mature markets and the need for innovation are driving OEMs to partner with specialist distributors, like Inchcape, for complex and hard-to-reach markets where local knowledge is vital.
Inchcape partners with established brands like Toyota and Mercedes-Benz, and newer entrants including Changan and BYD, to unlock growth in diverse markets through its in-market knowledge, global scale, advanced digital and data capabilities, and brilliant people. These OEMs benefit from having a trusted partner to build market share, deepen customer relationships, and showcase their brands through omnichannel strategies – while optimising efficiency and effectiveness.
Keys to success: agility and data-driven strategies
To thrive in this constantly changing landscape, OEMs must remain agile and adopt data-driven strategies. The right distribution partner provides the required local intelligence, global scale, and advanced technological capabilities.
They do the heavy lifting for OEMs, boost market share, grow volumes, and maximise return on investment while improving customer retention.
Seizing the future
The automotive industry holds immense opportunity for those who move at pace. Developing markets, technological innovation, and a commitment to sustainability will drive future success. Independent distributors, like Inchcape, are vital in helping OEMs navigate market complexities, uncover local insights and embrace data-driven strategies to drive sustainable growth and redefine the future of mobility.
Liz Brown
Liz Brown is Inchcape’s Chief Strategy and Sustainability Officer, and brings over 20 years of experience across consulting, consumer goods, private equity and retail. Since joining Inchcape in 2023, she has shaped the Group’s strategic direction, particularly through the development of its Accelerate+ strategy and the strengthening of relationships with OEM partners.
Since the launch of Accelerate+, Liz has played a central role in increasing the company’s focus on sustainability, highlighting it as a key competitive advantage. Liz now supports Inchcape in helping OEMs meet their own sustainability goals while also keeping the company ahead of industry and regulatory changes.
