There have been a lot of murmurs of big changes in the local automotive market and distributor business as of late, and much of it has been centered around Inchcape.

For months, rumors pointed to how Inchcape is having difficulties gaining market traction with the brands under their wing, such as Changan (not many EVs and HEVs, pricing issues) and Mercedes-Benz (general drop in sales and interest). But those brands won’t be going, as Inchcape just announced which brands they will be letting go of, and all are American.

In an official statement, Inchcape Philippines said they have “mutually agreed” with Stellantis that they will “conclude the Chrysler, Dodge, Jeep and Ram (CDJR) distribution partnership” in the country, and that it will happen almost a full year from now at the end of June 2027.

Of course, Inchcape gave the very press release answer that this “reflects Inchcape’s ongoing approach to portfolio management” and that the company is “regularly reviewing its brand partnerships to ensure its portfolio remains aligned with business priorities and strategic growth ambitions”. 

What they’re really saying (without actually saying it) is that Chrysler, Jeep, Dodge, and Ram models have become much harder to sell in the Philippines, and it’s come to a point where the only option is to pull out. Customer loyalty to legacy American brands has been dropping, driven by cost, a lack of innovation from Stellantis (they have their own difficulties to deal with), and the arrival of so many more options at much lower prices. And while not cited, the ongoing conflict in the Persian Gulf is having a devastating effect on demand for vehicles that have a stronger thirst for gasoline.

This almost has shades of former Peugeot, GAC, JMC and JAC distributor Astara, which closed down fully at the end of 2025, but Inchcape says they’re staying. Inchcape will start scaling back and winding down the CDJR business. We hear that they haven’t been ordering any more units from CDJR and will be finishing off their remaining inventory.

This all follows in the heels of the recent announcement that they sold the Mazda C5 dealership to Mazda distributor Bermaz. What remains will be the Changan and Mercedes-Benz businesses, and they have to find ways to make those vehicles more attractive and more compelling in the market. They have a tough task ahead. 

But it’s not all doom and gloom, as Inchcape was hinting that they will be investing in areas where they see long-term opportunity. What they’re saying (without saying it) is that they’re looking at new brands.

From what we hear, they may be in negotiations to be retail dealers for Xpeng, maybe even Xiaomi. We shall see what becomes of all these rumors and of Inchcape.