Group 1 Automotive has reported record first quarter performance in the UK, with gross profits rising 6.3% year on year to £170.8 million, driven by strong growth in aftersales, finance and insurance.
Group 1 has been integrating Inchcape UK’s dealerships into the group following a £346m deal in April 2024, which added 54 car and van dealerships which put it into the top five of the AM100 rankings of UK’s largest motor retailers.
The acquisition expanded Group 1 Automotive UK’s trading area into the Midlands and the North West of England and Wales and added more sites in its existing geographic footprint in the East and South East of England.
It also broadened its brand portfolio, adding Audi, BMW, Jaguar Land Rover, Lexus, Mercedes-Benz, Mini, Porsche, Smart, Toyota, Volkswagen and Volkswagen Commercial Vehicles.
Aftersales drives growth
The Houston-based dealership group, which operates 253 dealerships across the US and UK, said its UK operations delivered record revenues across nearly all major business lines in the first quarter, alongside record gross profit in used vehicles and parts and service.
“The UK performed well in the first quarter of 2026,” said Daryl Kenningham, Group 1’s president and chief executive officer. “Our UK business generated record revenues across nearly all major business lines and achieved record gross profit in used vehicles and parts and service.”
The UK performance was underpinned by double digit same store growth in parts and service and finance and insurance, helping offset softer new and used vehicle volumes.
Across the group, total revenues for the quarter reached $5.4 billion, slightly down from $5.5 billion in the same period last year, while net income from continuing operations rose to $129.9 million.
Adjusted net income fell to $104.0 million from $134.7 million, reflecting a more challenging trading backdrop and lower underlying profitability..
Cost controls, network changes
During the quarter, Group 1 expanded its UK footprint by acquiring one Skoda and two Volkswagen dealerships as part of Volkswagen Group’s Ideal Network Plan, adding around $135 million in annual revenues. It also disposed of one Volkswagen and one Skoda site in the UK, representing approximately $570 million in annual revenues.
The company said it remains focused on integrating acquisitions efficiently to drive shareholder value and had taken action to manage costs amid ongoing pressure on affordability.
“The broader macro environment remains dynamic and challenging, with persistently high interest rates and elevated vehicle and gasoline prices weighing on affordability. To address these challenges, we have initiated several cost actions in the US and UK, including staffing reductions and discretionary expense reductions across our business.”
In October 2025, Group 1 announced plans to exit the JLR franchise, citing economic pressures.
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