Inchcape Philippines eyes entry into used-car market
Multi-brand distributor Inchcape Philippines has a new boss – and he’s already looking into the company’s entry into the secondhand vehicle scene.
“Part of the Inchcape enablers that help us do business is vehicle life-cycle services – here, we talk about used cars,” said newly minted country head Alex Yap in an exclusive interview with Inquirer Mobility at the sidelines of a media luncheon on Thursday.
“My preliminary view is that it’s going to take a lot more study because what I’ve observed is that not many distributors go into used cars,” he added. “It could be an opportunity – I’m not sure at this point – but certainly we’ll take a deep look at it.”
Yap replaces Alex Hammett, who remains Inchcape managing director for South Asia & Pacific. Inchcape Philippines officially started operations in August 2023 under a joint venture with the CATS Group of Companies of veteran automotive executive Felix Ang.
The company is the official importer and distributor of Mercedes-Benz, Chrysler, Dodge, Jeep, RAM, Jaguar, Land Rover and Changan Auto. It also handles dealerships for Mazda, Harley-Davidson Motorcycles and Japanese truck brand FUSO.
Inchcape Philippines has five locations in Quezon City, San Juan City, Pasig City and Bonifacio Global City in Taguig City. It is the local subsidiary of multinational firm Inchcape, which is one of the world’s leading automotive distributors and operates in more than 40 markets.
Inchcape also has a Certified Pre-Owned program in places like Singapore, where buyers get 145-point vehicle inspections, 24/7 roadside assistance, a 12-month warranty and one-time complimentary servicing.
Despite this, Yap said his immediate priority is to keep Inchcape Philippines’ operations steady as it enters the Year of the Wood Snake.
“For us, we are on-track with what we are set to do as we go into the fourth quarter,” he said. “And we are very confident that as we progress forward, things will get better and we’re setting the stage for 2025.”
Improved aftersales
One of Inchcape Philippines’ major milestones is the opening of its multi-brand parts, service and training facility in Pasig Citylast September.
Located just behind the Changan C-5 and Mazda C-5 showrooms, the 11,577-square-meter compound includes a state-of the-art body and paint shop, including a high-end aluminum repair facility. In addition, there is a training centerwith an in-house “barracks” for up to 60 personnel.
But Yap said the company’s 900-square-meter parts warehouse, as well as its 95-percent fill rate target, will have a substantial impact on the aftersales experience, even for owners of the group’s luxury brands. It uses Inchcape’s proprietary Warehouse Management System that helps optimize layouts, provide real-time inventory data and keep track of product movement.
“I am confident that there is improvement – parts are arriving and in stock, we have shortened that process,” he said.“Typically, timelines depend on the vehicle’s issue and supply chain. What we can do is that things within our control, we are doing expediently.”
Data matters
Inchcape Philippines is also making good use of its investment in big data, particularly in predictive analytics.
“What we do is that we start tracking the customers’ behavior in terms of interest level, how frequently they download a PDF and where do they click to start searching for color, price,” he said.“That information funnels down to give us more accurate targeting – as to the Philippine market, at this stage, it’s too early for me to comment.”
For 2025, Yap said Inchcape Philippines will evaluate and strengthen the systems that it set up this year.
“At the same time, we are negotiating with OEM partners for new products, so we will look into how these weave into the Philippine market and how our systems and processes can make them work in tandem,” he said.
