Automotive tycoon Felix Ang’s company, CATS Group Inc., has formed a partnership with British firm Inchcape. Inchcape will also acquire the majority stake in CATS Group, with the Ang family retaining 40% ownership. The agreement will be completed in 2023.
“We are very pleased to be entering the new and strategically important market of the Philippines through the acquisition of a controlling stake in CATS’ Philippine operations. As the leading luxury vehicle distributor in the market, CATS has excellent OEM relationships, and we look forward to working with them and the Ang family to drive the business forward,” said Ruslan Kinebas, Inchcape’s APAC CEO.
“After over 30 successful years of operating independently, we believe the time is now right for CATS to take the next step in our growth journey, and in Inchcape, we have found the right partner to drive us forward. The Philippines is a fast-growing market with an increasing demand for the luxury vehicles we provide, and we look forward to leveraging Inchcape’s leadership in digital and data to further build our distinctive market position through the provision of best-in-class customer service,” added Felix R. Ang, CATS Group of Companies founder.
The partnership between CATS Group Inc. and Inchcape, two major players in the automotive and mobility industry, was announced at a press conference on January 18, 2023, held at the Mercedes-Benz Showroom in Taguig. This joint venture will significantly benefit CATS Group Inc. by providing them with the opportunity to expand their operations globally, and Inchcape’s expertise in digitalization and data analytics will aid in keeping up with the dynamic market demands in the Philippines and Asia. In addition, Inchcape’s existing IT network in the Asia-Pacific region will be utilized.
Inchcape’s expertise in digitalization could improve CATS Group’s logistics network, making it easier for customers to access aftermarket services. Additionally, Inchcape plans to share its knowledge of electric vehicles with CATS Group. The partnership has the potential to increase both companies’ market share in the growing luxury car market in the Philippines, which is projected to reach 500,000 units sold by 2026.
CATS Group currently has a 35% market share in the Philippines and is the official distributor of several luxury car brands, such as Land Rover, Mercedes-Benz, Chrysler, Jeep, Dodge, and Ram, as well as Mazda cars and Harley Davidson Motorcycles.
Inchcape has a long history in Asia, dating back to 1925 when it first started as a distributor in Singapore. Today, it sells a wide range of luxury car models across several territories including Brunei, Hong Kong, Indonesia, New Zealand, Singapore, and Thailand, among others.