Ruslan Kinebas, CEO, Inchcape Asia-Pacific.
Ruslan Kinebas, CEO of Inchcape’s Asia-Pacific region, tells us about why he decided to move from the food industry to automobile distribution.
Cadbury chocolates. Philadelphia Cheese. Jell-O. Oreo. These are not the products you’d find in a carpark or a garage. They are also not the brands you’d expect a CEO of a multi-brand car distributor to have previously handled.
However, the companies and their products are exactly what Ruslan Kinebas, CEO for Inchcape’s Asia-Pacific region, used to be familiar with.
Before joining Inchcape in 2015, Ruslan worked for companies such as Kraft Foods, Cadbury, and Mondelez International. The latter, which is one of the world’s largest snacks companies, is best known for its Oreo brand of cookies.
When the chance to join Inchcape – a British multi-national corporation and multi-brand car distributor – presented itself, Ruslan came aboard as the CEO of Emerging Markets. In 2019, following a series of re-organisations, he was made the CEO of Americas and Africa. In this position, he was tasked with growing the company’s presence through mergers and acquisitions.
Ruslan moved to Singapore in 2021 after being appointed to lead Inchcape’s Asia-Pacific region. He talks to Torque about the similarities between the food and automotive industries, Chinese EV brands, and what the future of internal combustion engine (ICE).
Tell us about your journey from food to automobiles.
Most of my career was in the food business, and I was always fascinated by brands. I’ve had the pleasure of working with Philadelphia Cheese, coffee brands, and chocolate brands.
This was exciting, but what was even more exciting was the ability to run these businesses in high-growth markets. Then the Inchcape opportunity came along. It represented the “stars aligning”.
There are no more “emotional” brands than in the automotive sector. There was a very clear ambition of growth with Inchcape – the firm was looking to expand across developing markets, both organically and non-organically.
Suzuki is one the brands distributed by Inchcape Singapore.
That was super exciting. But also, I always thought that the industry itself was fascinating because at that juncture (and up to now) it’s going through an enormous transformation.
So, being part of that, connecting to those emotional brands that consumers love and being able to drive growth, is fantastic. I’ve not regretted the move since.
Were you thinking of joining the car industry while you were still at your previous job?
I wouldn’t claim it’s always been the case. But towards the time I was about to make the change, I was getting excited about opportunities in other industries, particularly automotive. It was certainly on my radar.
I’ve always loved cars, but I was not educated as an engineer. I wasn’t involved in automotive in any way, shape or form before. That’s why it was not an obvious choice.
What attracted you to Inchcape?
I spent many years working for one big British establishment – Cadbury. It has centuries of history and very strong values. The way the company always treated people – both customers and employees – was always exemplary.
Inchcape has a lot of similar qualities. It’s an old British establishment with enormous history and a fantastic set of values that I can completely relate to. So, for me, moving to Inchcape in that respect was culturally very close. I felt very much at home from day one.
The emerging middle class in the Asia-Pacific region means a potential for high growth. Has inflation dented this? Or is this just a blip on Inchcape’s radar?
I think you said it. The industry is not immune to macroeconomic challenges, but we still feel that this sector is resilient in the medium to long-term. There is still an inherent desire to have access to mobility, and there are many parts of the world with low “motorisation rates” that will continue growing.
If you look at all the GDP forecasts for this part of the world, Asia-Pacific has enormous growth potential in automotive.
One of the key reasons why I thought it was an exciting job and why I wanted to come here is because we’ve got a very solid foundation here with a lot of history with fantastic brands like Toyota.
We have the opportunity to step change growth by entering more of the growth markets, which we did last year. This includes bringing in more brands, including Chinese brands, to the portfolio across the markets of the region. There is growth potential, and we definitely count on it going forward in 2024.
GAC’s Aion is one of many Chinese brands that have entered the small but fiercely contested Singapore market.
Does Inchcape foresee Chinese car brands continuing to grow?
Yes, absolutely. One of the key trends that we see is the emergence of Chinese OEMs. We can say they have “graduated”. They are certainly a force, and they have a lot of influence on the direction the automotive industry will take.
They were relatively late in going into a lot of Asia-Pacific markets, but it’s happening now. We are just trying to tap into that growth.
So, one of the reasons I feel very positive about the opportunity here is because we’ve got solid relationships with a number of major Chinese OEMs. And we can build on our relationships elsewhere in the world and bring those brands into the market.
We are starting to build a relationship with BYD Trucks for the Singapore market. We are looking at the Chinese OEMs and how we can expand the business. That’s certainly one of the growth drivers in APAC (Asia-Pacific) moving forward.
Hybrids, such as the Toyota Prius, are needed in markets that require eco-friendlier models, but cannot support a large EV population.
Does Inchcape foresee more hybridisation and electrification of car models, especially since some markets aren’t ready for EVs?
It’s a simple and not-so-simple story. On the one hand, electrification is happening, and the EV segment will become increasingly important. I wouldn’t try to forecast because the only truth to forecasts is that they are wrong. You might read that half of all car sales in 2040 will be electric. Maybe that will come true, maybe not.
At the moment, we are seeing on average, across the biggest developing markets, that about 8% of sales are EVs. Maybe it will get to 10% in the short-to-medium term. But when you look at these numbers, it’s quite difficult to judge.
So, is EV adoption happening? Yes, it is. But it’s not linear. There is also evidence that some of the growth in more developed markets has plateaued. It’s probably going to continue, but it won’t be in a straight line.
The availability and number of of public chargers will determine whether a market can sustain an EV population.
We also believe that there is room for various drivetrains, including hybrids, that will still be needed as customers are getting access to mobility across a variety of markets with different regulations and different GDPs per capita. That’s why hybrids and some of the more efficient internal combustion engines are still needed.
There will be a mix. We work with more than 50 OEMs across the world in over 40 markets. We see the strategies the OEMs apply, but we also see what the customers actually need. Electrification will certainly continue, but multiple drivetrains are needed for the foreseeable future.
Will an incident like the MV Dali colliding with the Francis Scott Key Bridge in Baltimore cause a ripple effect for logistics?
I cannot comment on behalf of OEMs. What I can say, however, is that the world is clearly interconnected – cars have different origins and go to different markets.
Inevitably, any disruption in transportation routes has some impact. Normally, we would see this reflected in the cost. If you look at the supply chain disruption from the chip manufacturers, there was a real crunch then. But, regarding the question, nothing of that magnitude is happening now.
So, while there may be some impact to the automobile manufacturers directly, we don’t feel a significant impact to overall business.
Over half of the EVs made globally originates from Chinese OEMs, and the European carmakers aren’t thrilled about them. They have cited government subsidies as a problem.
I cannot comment on decisions made by the European Commission. Facts are facts: more than half of EVs made come from China, and China is home to more than half of the EV market itself. Nine out of the top 10 EV manufacturers are Chinese.
Therefore, the growth and presence of Chinese EV brands is obvious. They are not going anywhere.
The first Lexus that Ruslan got to drive was a 2009 RX450h.
On to more personal topics. What was the first Toyota or Lexus you drove?
The first Toyota I drove was a rental Toyota Yaris, many years ago! For Lexus, it was the first RX Hybrid, a 2009 RX450h.
Do you have a favourite Toyota, Lexus, or Suzuki model?
We work with more than 50 brands and have different brand combinations. So, pretty much, all the big players. In different markets we have different multi-brand combinations. We run the business on the basis of a multi-segment, multi-brand scale.
So, my answer may differ depending on which country we’re in. But what I can tell you is that here, I drive a Lexus RZ (RZ450e) and I love it. I think it is an absolutely perfect car for Singapore. Fantastic car, great looks, and all the tech.
Ruslan’s company car is an all-electric Lexus RZ450e.
But back home in the UK, I still have a Range Rover Sport. So, it’s a reflection of Inchcape’s variety. By the way, my son who is working and living in Italy drives a Toyota Yaris Cross.
Now, if I were living in the Philippines or Indonesia, I would probably be driving one of the “dream” Mercedes-AMG models.
If you could go on a road trip back home in the UK, what is the first place that pops into your mind?
Scotland. Or the south of France. There are great road trips you can do from London. You can go all the way north to Scotland, which has fantastic scenic roads. Or equally, it’s very easy to go down to France either in the winter to ski or in the summer to the coast in the south of France.
Why a Rolls-Royce is now for the young, modern and self-driven owner
