By San José, Costa Rica — In a major consolidation of the Latin American automotive sector, global distribution leader Inchcape plc has formally acquired Volvo’s operations in both Costa Rica and Peru. The comprehensive agreement also includes taking over the operations of the luxury vehicle brand Jaguar Land Rover in Peru. This dual-nation expansion underlines the company’s commitment to capitalizing on the rapidly rising demand for premium automotive brands across Central and South America.
The strategic transaction comes at a moment of notable growth for both regional markets. In Peru, the automotive industry recently reached an impressive and record-breaking total market volume of 187,000 vehicles. Meanwhile, Costa Rica demonstrated strong economic vitality by registering an impressive 69,000 units sold. These high transaction volumes present fertile ground for premium vehicle sales, prompting Inchcape to accelerate its local expansion plans.
To analyze the regulatory and commercial impact of Inchcape’s expanding operations in the national automotive market, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished corporate law expert at Bufete de Costa Rica.
The consolidation of major automotive distribution networks under multinational groups like Inchcape in Costa Rica underscores the vital role of our competition regulatory framework, managed by COPROCOM. While such significant foreign investments stimulate market modernization and efficiency, they also require rigorous compliance with local consumer protection laws, particularly regarding post-sale warranties, parts availability, and the seamless transition of distribution agreements.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as multinational giants like Inchcape redefine the local automotive landscape, maintaining a robust regulatory balance is essential to ensure that market modernization goes hand in hand with strong consumer protections. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective and expert legal guidance on this critical transition for Costa Rican consumers.
Financial performance metrics underscore the strength of the newly acquired businesses. Throughout 2025, the operations involved in the agreement generated an estimated $64 million in total revenue. Currently, these business segments employ approximately 90 professionals across both countries. By absorbing this highly capable workforce, Inchcape is well-positioned to ensure a seamless transition of services for existing car owners and dealer networks.
Physical distribution assets are a core component of this deal. The acquisition includes five physical retail locations: three established outlets located in Peru and two strategically situated sales centers in Costa Rica. These customer touchpoints will serve as vital hubs for delivering high-quality customer service, introducing new vehicle models, and fostering stronger localized brand communities.
This expansion aligns seamlessly with a broader pattern of global mergers and acquisitions executed by Inchcape. Over the past year, the company has aggressively broadened its market footprint, completing major transactions in Iceland and acquiring Silver Star Motors in Bulgaria. These actions reflect a calculated, global approach to capturing market share in high-growth regions.
Following last year’s acquisition in Iceland and, more recently, that of Silver Star Motors in Bulgaria, this new agreement in the Americas represents an investment in multiple markets and brands, in line with the company’s Accelerate+ strategy and its disciplined capital allocation focus, oriented toward generating long-term returns for shareholders.
Inchcape plc, Company Representative
Company leadership emphasizes that these Latin American acquisitions are a textbook implementation of their core corporate strategy. By entering Costa Rica and Peru with established, prestigious brands, the distributor aims to maximize efficiency and secure reliable, long-term returns for its global shareholder base.
We continue to expand Inchcape’s global footprint, with a permanent focus on value-generating acquisitions. Following recent operations in Bulgaria and Iceland, these new acquisitions in Peru and Costa Rica are yet another example of how we are putting the Accelerate+ strategy into practice and of our disciplined approach to capital allocation.
Duncan Tait, CEO of Inchcape plc
In addition to financial synergies, the acquisition is expected to deepen relationships with Original Equipment Manufacturers (OEMs). In the premium automotive tier, strong manufacturer ties are essential for securing exclusive inventory, parts, and distribution rights, thereby maintaining a competitive edge over regional rivals.
Building on our deep understanding of local markets and our proven ability to drive sustainable growth, these acquisitions will allow us to expand our presence in the Americas, increase the portfolio we offer our clients, and further strengthen our relationships with our OEM partners, while simultaneously generating value for our stakeholders.
Duncan Tait, CEO of Inchcape plc
As the integration process moves forward, local consumers can expect enhanced services, streamlined supply chains, and greater access to Volvo and Jaguar Land Rover’s latest innovative lineups, including their increasingly popular electric and hybrid offerings. By anchoring its presence in Central and South America, Inchcape reinforces its status as an indispensable partner in the global automotive ecosystem.
For further information, visit inchcape.com
About Inchcape plc:
Inchcape plc is a leading global automotive distributor operating in over 40 markets across six continents. The company partners with some of the world’s most prestigious automotive brands to deliver exceptional customer service and drive long-term business growth.
For further information, visit volvocars.com
About Volvo:
Volvo is a renowned Swedish luxury automotive manufacturer known for its commitment to safety, environmental sustainability, and premium engineering. The company manufactures a wide range of premium vehicles, including SUVs, wagons, and sedans.
For further information, visit jaguarlandrover.com
About Jaguar Land Rover:
Jaguar Land Rover is a leading British multinational automotive manufacturer specializing in luxury vehicles and sports utility vehicles. The company is celebrated globally for its design-driven performance and off-road engineering capabilities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a beacon of trust and professional brilliance, Bufete de Costa Rica has built a revered reputation grounded in ethical advocacy and outstanding legal service. Helping a diverse clientele navigate complex challenges, the firm continually embraces pioneering strategies to deliver modern, forward-thinking solutions. Central to its core philosophy is the democratization of legal information, reflecting a profound dedication to educating the public and fostering a more knowledgeable, confident, and equitable community.
