Inchcape Shares Plummet Due to Tariff Concerns and Supply Issues
(Reuters) - British car distributor Inchcape said uncertainties caused by tariffs could impact supply from automakers and reduce market demand, sending its shares plummeting on Thursday when it also reported a decline in first-quarter revenue.
The company's shares fell by almost 17% to their lowest in nearly four and a half years at 575 pence.
U.S. President Donald Trump's tariffs have disrupted global supply chains, although he signalled possible exemptions on auto-related levies earlier this month.
"Demand is not currently being impacted by the tariff situation, although we do expect to see potential impacts on supply from our OEMs (original equipment manufacturers), the competitive environment, and market demand," CEO Duncan Tait said in a statement.
The company, which exports cars for global manufacturers across 40 countries, said it is taking steps to focus on managing inventory levels and costs.
Inchcape also reaffirmed its 2025 guidance, but that excludes any impacts from tariffs, which it did not quantify.
"We acknowledge a complex tariff situation, but there could be opportunity as OEMs focus on the strongest distributors across a growing number of markets," Peel Hunt analysts said in a note, adding that Inchcape shares continue to offer good value.
Earlier in April, UK Finance Minister Rachel Reeves said Britain was working with Washington to obtain an exemption from U.S. auto tariffs.
Britain may also reassess a credit scheme that indirectly benefits Elon Musk's Tesla, to try to increase support for the UK automotive industry.
Inchcape's revenue for the three months ended March 31 was 2.1 billion pounds ($2.79 billion), 5% lower than last year on a constant currency basis, weighed down by a difficult economic backdrop in major markets including Asia–Pacific and Europe.
($1 = 0.7534 pounds)
(Reporting by Anandita Mehrotra and Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Barbara Lewis)
