Auto distributor Inchcape cuts margin forecast on Australia woes, shares tumble

Oct 22 (Reuters) - British auto distributor Inchcape INCH.L cut its annual adjusted operating margin forecast on Thursday, citing persistent underperformance in Australia amid intensifying competition from Chinese automakers.

• A rapid shift towards electric and Chinese-made vehicles in Australia's largely stagnant auto market has weighed on distributors such as Inchcape, whose portfolio remains heavily skewed towards petrol-powered brands including Subaru

• Inchcape now expects an adjusted operating margin of about 5.5% for 2026, down from the 6% expected previously, as underperformance in Australia is expected to dilute margins

• Shares of the company fell 11.7% in early trade, making Inchcape top loser among London stocks

• Inchcape's group volumes rose 3% in the three months to September 30 as strength in the Americas offset a 37% drop in Asia-Pacific

• In Australia, volumes halved as fuel disruption, a faster shift to electric vehicles and weaker competitiveness at its main automotive partner hit sales

• Inchcape is taking further action in Australian alongside existing restructuring, including product review and a contract exit, but expects pressure to continue

• The company kept its adjusted earnings-per-share growth forecast of about 10% unchanged