Inchcape to close Russian car retail operations

Inchcape is pulling out of the Russian market as a result of the ongoing conflict in Ukraine.

The PLC business behind the AM100 dealer group said its interests in the country are “no longer tenable”.

Inchcape's business in Russia is a retail-only operation. During 2021 it contributed £750m of revenue, accounting for 10% of the group’s total sales.

The company issued a statement, which said: “Inchcape is deeply saddened by the ongoing conflict in Ukraine and the enormous humanitarian impact on all those affected. We share the hopes of the world for a peaceful resolution.

“In light of the current circumstances, we have concluded that the Group's ownership of its business interests in Russia is no longer tenable.

“Therefore, working in conjunction with our OEM partners, we have initiated a process to transition our Russian business. We intend to do so in full compliance with international and local regulations and with the aim of safeguarding the continuing employment of our colleagues.”

In February, Inchape reported a 12% rise in turnover and 131% in pre-tax profits in its 2021 annual financial results.

The Group expanded into Russia in 2006, initially establishing two retail and service centres in Moscow for Toyota vehicles.

It grew the business to 19 sites in Moscow and St. Petersburg, representing 11 brands. Last year, Inchape disposed of its St. Petersburg operations as part of a £70m sell-off.