CATS Motors Inc., a serious distributor of luxurious autos within the Philippines, stated gross sales of its merchandise stay robust regardless of rising inflation.
Francis Jonathan C. Ang, CATS director and COO of Mercedes-Benz, stated that “whereas inflation has positively pushed up automobile costs fairly a bit over the past yr, the overall lack of provide has additionally made automobile availability tougher , and due to that, that intersection between provide and demand, I feel we’re nonetheless doing fairly effectively when it comes to income.”
Although he did not disclose numbers, Ang stated the posh automobile retailer captured 35 p.c of the posh model market within the Philippines in 2022.
“The vast majority of the manufacturers we run are a part of the posh premium or area of interest trade so it is typically troublesome for me to place a quantity on it as a result of what we’re doing internally is we actually actually deep and out there dividing completely different market areas,” Ang advised reporters in an interview after a press convention on CATS Motors’ three way partnership settlement with Inchcape on Wednesday in Taguig Metropolis.
The corporate has been promoting Mercedes-Benz, Chrysler, Jeep, Dodge and Ram within the Philippines since 2004. In 2017, it expanded its product vary to incorporate Jaguar and Land Rover. It additionally has sellers for Mazda and Harley Davidson bikes.
Ang didn’t give a gross sales forecast for 2023. Nevertheless, he stated the corporate will launch “a number of new fashions” this yr.
In the meantime, Ang, who can be COO of Mercedes-Benz, stated the German premium automobile model was No. 1 within the luxurious phase earlier than the pandemic. Nevertheless, because of provide points, Ang stated demand for the automobile model has outstripped provide over the previous three years.
“We have had hassle delivering (vehicles) to a whole lot of prospects and we’ve got a really lengthy ready checklist.”
He stated provide chain was the perpetrator behind the backlog, including that it was already “time and again” simply the semiconductor concern as part makers scramble to extend world provide.
In the course of the occasion, Inchcape, a serious world multi-brand automotive retailer, introduced an settlement to enter right into a three way partnership with the CATS group of firms, together with Inchcape’s acquisition of a majority stake in CATS.
The deal is predicted to shut within the second half, with the Ang household retaining 40 p.c of the corporate, in keeping with an announcement launched by CATS Motors on Tuesday.
“We’re very happy to enter the brand new and strategically essential market of the Philippines by buying a majority stake in CATS’ Philippine operations. As a pacesetter in luxurious autos out there, CATS has glorious OEM relationships and we sit up for working with them and the Ang household to advance the enterprise,” stated Ruslan Kinebas, Asia Pacific CEO of Inchcape.
For his half, Felix R. Ang, Founding father of the CATS Group of Firms, stated his firm seems ahead to “leveraging Inchcape’s management in digital and knowledge to additional develop our distinctive market place by delivering world-class customer support.”