NEWS

I always enjoy publishing articles in this newsletter about how customers are using our products and services to support their vehicle remarketing strategies.

In this newsletter we hear from RCI Banque SA NL AT on how they are using Autorola’s Full-Service solution, which includes the Fleet Monitor Workflow and Asset Management platform.

Customer feedback

It makes me happy when they report that we have helped ‘automate their processes, with full transparency, less resource and quicker lead times.’

We also share with you our latest partnership with MotorK and INDICATA in the Benelux region on how they are integrating our data with their digital platform to provide their clients with a high-quality and accurate used car valuation service. We look forward to this partnership going from strength to strength.

Export remains a valuable tactic

We also hear from our Austria country manager Rene Buzek on how his team are helping vendors deal with the ever-changing used market conditions. In his interview he tells us how export remains a valuable tactic for many vendors in the country.

We continue to track the fortunes of used BEVs across Europe and depending on which country you are in depends on how quickly or slowly they are selling. Our INDICATA Market Watch report provides valuable insights for vendors and buyers alike on how all the used fuel types are performing. Surprisingly used diesels remain the fastest-selling cars and BEVs the slowest and we will continue to track these trends.

We hope you find the newsletter useful.

Best regards
Peter Grøftehauge (LinkedIn)

The Austrian new car market continues to grow with sales up 16.6% in the first six months of 2023 with SUVs by far the most popular car type. All sectors of the market are stable, a trend which has extended to the used market where the buying audience remains strong, fuelled by a growing GDP and reducing unemployment.

Strong used car demand has helped prices rise by 3.6% since January 2022, the fourth highest rise in Europe in July with Austria only one of three countries along with Turkey and France to see prices continuing to rise month-on-month.

BEV stocks continue to grow

The current Austrian used market is split 45%/35% between diesel and petrol but while the share of new BEVs continues to grow, there is one distinct trend that is developing.

The Market Days’ Supply (MDS) of used BEVs is 183 days, which means that sales are rising but not as fast as stock levels are growing, which is where the export opportunity for dealers is a real one.

High export ratio

The export ratio in Austria remains high. As vendors look to achieve the right prices for their vehicles, they generally extend their reach beyond the limited Austrian buyer audience. Autorola manages all the paperwork and logistics connected with moving a used vehicle from one country to another and currently around 25% of used cars end up in other European countries.

“We work with a range of leasing and bank partners all of which are switched onto the power of selling used cars online. We run timed weekly online sales on behalf of vendors but also hosts several closed sales for the likes of Kia, Ford, Mercedes-Benz and RCI Bank to offer used cars for sale directly to their franchised dealer network via our bespoke Branded Sites auction portal,” explained Rene.

With global new car supply restrictions still impacting new car volumes then the priority of manufacturers is to offer used stock to their dealers before they are sold in the open market.

Supporting dealers and OEMs

The interest in INDICATA’s used car pricing and insights platform continues to grow with many different customers using it for different purposes. It has been supporting dealers for the past two years as an alternative in real time to the more traditional valuations tools while several OEMs are using it to provide a helicopter view of their national dealer network’s used car activity.

They can view the impact of pricing tactics and KPIs across the franchise and how they compare against rival brands, whilst an overview of stock levels helps the manufacturer appreciate how the market is moving.

“For those utilising online and physical auctions INDICATA can also be used to benchmark auction results against the overall market which supports dealers in operating a live pricing policy that has been known to change 2-3 times per week in this recent fast-moving market.

24/7 asset transparency

“With banks and financial institutions welcoming full transparency at every stage of the vehicle asset management process, our Fleet Monitor workflow and management system has become very popular with multiple fleets and OEMs,” reinforced Rene.

One such customer is Kia Austria who has successfully used the system for more than a decade with many customers using it as a full-service solution from the capturing of the initial vehicle order and registration through to managing end of contract inspections and remarketing.

Guaranteeing the best possible lead times

Kia Austria commented that “It is a huge advantage to handle our cars in an automated workflow which secures our processes and guarantees the best possible lead times for every part of the vehicle management process.”

At the end of contracts customers can then utilise INDICATA’s pricing data to set a used car market reserve and then we use our Marketplace online remarketing platform to sell the vehicle. RCI Banque is also using Fleet Monitor as a full-service solution.

Autorola has had a long-standing relationship with RCI Banque SA NL AT in Austria locally for many years.

RCI Banque SA NL AT uses the benefits of Autorola’s Full-Service solution which includes the Fleet Monitor Workflow and Asset Management platform.

The one system is responsible for managing all RCI Banque’s services including vehicle logistics, storage, inspection, de-registration, selling, invoicing, export and many more.

Manual processes

“Before partnering with Autorola we had lots of manual processes in place that were supported by limited resources,” said Georg Berner, RCI Banque SA NL AT Director of Customer Services.

“By implementing Fleet Monitor, we saw an immediate impact to our business when managing vehicles across their life cycle including remarketing used cars at the end of contracts.”

“Automated processes, full transparency, less resources, and quicker lead times were only some of the benefits of Fleet Monitor that we could directly measure.”

Offering used cars to thousands of buyers
“When integrating Fleet Monitor with Autorola’s European buyer network it also enabled us to offer our used cars for sale online to thousands of buyers which has also increased our profits,” he added.

In Austria many of Autorola’s customers use the advantage of outsourcing its fleet to a Full-Service Solution which includes Fleet Monitor to give a live overview on the status of each vehicle on their fleets. This provides customers with full transparency of each process in buying, running, and selling vehicles.

MotorK, the leading EMEA group specialising in SaaS solutions for automotive retail, has announced that its subsidiary Carflow has entered into a new strategic partnership with INDICATA.

Thanks to this cooperation, dealers and car manufacturers in the Benelux region will be able to integrate INDICATA data collection and analytics tools, specifically designed for the automotive industry, into MotorK’s digital solutions, thus providing its clients with a high-quality and accurate service for used car valuation.

Offering quality products

The partnership is perfectly aligned with the MotorK Group’s broader strategic roadmap, which places the concept of customer centricity at the heart of its core business, to offer quality products, designed and manufactured with an automotive-first approach, to its customers.

Thanks to INDICATA’s expertise, dealers and OEMs who already rely on MotorK’s services will be able to further enhance its SparK Platform offering with a specific tool to manage a delicate phase of the customer journey, which is used vehicle appraisal and trade-in.

Increased used car stock turnover

Improved market transparency and optimised operations are two key elements for a successful business outcome for automotive retailers; additional analytics capabilities can lead to increased stock turnover, whereas better fine-tuned processes lead to lower risks.

“The increasing digitalisation of automotive retail has resulted in a fragmented tech offer. At MotorK we strongly believe in strategic partnerships to consolidate the industry and offer the customer a quality and customised product,” commented Marco Marlia, CEO and Co-Founder of MotorK.

Staying at the forefront of innovation

“We are happy to start a collaboration with INDICATA, a valuable partner for us in the Benelux area, which will help us to continue to lead the automotive retail industry, always being at the forefront of innovation.”

“Used car business intelligence is our playing field and providing values to drivers online when they need them can really improve the customer experience,” said Peter Groftehauge, Group CEO of the Autorola Group.

“Thanks to this partnership, we can combine INDICATA’s used car analytics with MotorK’s knowledge of the digital automotive customer journey and offer a powerful tool to the market, which creates value for both retailers and end users.”

The demand for used BEVs continues to fluctuate from country to country according to INDICATA’s latest Market Watch report.

Whilst used BEVs are experiencing some healthy growth in used markets like Denmark and the UK, used car buyers in other countries like Belgium and Spain are still reluctant to embrace the powertrain which is creating stocking challenges for dealers.

BEVs are Europe’s slowest selling fuel type

On average across the 13 European countries in the INDICATA report the Market Days’ Supply (MDS) figure – which measures the stock supply divided by the current sales rate over the past 45 days – for used EVs is at 110 days compared with 83 days for used hybrids, 64 days for used petrols and 58 for diesels.

Diesel stocks are falling based on continued demand by drivers as well as falling new car sales which is starting to starve the market of used cars particularly at less than 24 months of age.

Market Days’ Supply ranges from 52 to 196 days

In some countries like Belgium the MDS for used BEVs is as high as 196 days, 183 in Austria and 152 days in Spain, while in Denmark the figure is just 64 days and, in the UK, it has fallen to just 52 days.

Overall European sales of used BEVs rose to a record high of 3.76% but when you look at both Denmark and the UK there is a big correlation between prices of used EVs falling and sales volumes increasing. Prices of used EVs have fallen in Denmark by 7.1% and in the UK by 24.6% during 2023 which has obviously been enough for drivers as the price gap between EVs and ICE cars continues to fall.

Used BEV prices continue to fall

Overall used BEV prices fell by 2.5% from June to July, although this was against a background of gently falling prices month-on-month in 10 out of the 13 European countries covered in our report caused mainly by the normal seasonal summer slowdown.

“There are multiple countries where the demand for diesel and petrol used cars is deep rooted and so the move to used BEVs is much slower even if prices continue to fall,” explained Andy Shields, INDICATA’s global business unit director.

“Used BEVs will continue to take their time to find a level of demand and price in every country and its still very early days. Until then export is a consideration for left hand drive cars in those countries where stocking levels are reaching dangerous levels,” he added.

For a free copy of the latest INDICATA Market Watch report go to www.indicata.com

It’s already over six months since we announced our Middle East partnership with Al-Futtaim Automotive. It is a very exciting partnership for both groups, and we have already had great success with working with Al-Futtaim dealers and its Hertz franchise in the region.

In this newsletter Ib Kimose, Autorola Solutions global business unit director tells us how our technology is helping 45 dealership locations in Dubai, Oman, Qatar, UAE, and Egypt with used car sourcing, pricing transparency and customer experience.

Celebrating 10 years with Fleet Monitor

Meanwhile, Kia Austria is celebrating using our Fleet Monitor workflow monitoring tool for more than a decade.

Katharina Williamson, Kia Austria’s Fleet & Used Car Manager shares with us how Kia continues to benefit from improved workflows, increased efficiency, and a lighter administration burden thanks to Fleet Monitor.

Keeping track of used EV trends

Our INDICATA team has now published 40 Market Watch reports which share used car insights from 13 European countries. It continues to keep the market informed about used EVs which are gaining sales traction now that prices have fallen, but the big challenge is the speed at which fresh stock is coming into the market.

We have also interviewed Pietro Sportelli, Head of INDICATA Italy on how INDICATA’s used car insights are helping dealers and OEMs in Italy manage a changing used car market which is slowing down as new car sales rise.

We hope you enjoy reading our latest newsletter and hope you all have a great summer.

Best regards
Peter Grøftehauge (LinkedIn)

The joint venture between Autorola Group and Al-Futtaim Automotive was announced in December 2022 providing us with our first presence in the Middle East. It was the result of many months of conversation between our two companies culminating after six months of setting up an entire integrated platform for used vehicle handling and running online auctions for Hertz in the UAE, a business owned by Al-Futtaim.

Sourced used vehicles were uploaded onto the Autorola digital platform, where key processes were efficiently managed to get the vehicles prepared for the Al-Futtaim dealer network to bid on with any unsold stock then offered to the open market for sale.

Simplifying processes

Autorola Middle East & North Africa (MENA) Holding Limited was set up to reinvent the region’s B2B used-car market through an integrated and end-to-end digital platform which simplifies every step of the vehicle lifecycle.

Six months after the partnership launch our Fleet Monitor platform is now providing a structured digital vehicle trade-in process for 45 Al-Futtaim dealer locations which represent Toyota, Lexus, Volvo and Polestar in Dubai, Oman, Qatar, UAE, and Egypt.

Centrality is key

Over 350 dealer sales staff have access to our inspection software via their handheld device which enables them to inspect customer cars accurately and consistently on the spot. Each inspection report is then automatically transmitted to Al-Futtaim’s central pricing team and within 15 minutes the used car is valued, and the price presented to the customer.

The customer can trade in the car against a new or used car, or they can sell it to the dealer for cash.

Transparent pricing and seamless workflows

The process is providing dealers with an easy and hassle-free way to source cars, to be able to vouch for consistent transparent pricing and to give an improved customer experience. The entire process is tied together seamlessly within one digital landscape which ensures a more efficient and secure value chain resulting in better trade-in ratios, faster stock turn and an overall improved performance.

Inspection numbers increase

The platform has only been live for a couple of months but already the processes are proving very efficient. Al-Futtaim dealers performed 1,800 inspections in May using our platform, which is likely to rise to up to 4,000 – 6,000 by June and onwards.

We continue to work with Hertz, which provides short-term rental and long-term leases to business and retail customers. They continue to use our inspection software and upload vehicles onto our online platform for sale to Al-Futtaim dealers first and then to the open market.

In future we will look to open up cross-border sales to other buyers in other Middle East countries, which will further support stock turn for Hertz.

About Al-Futtaim Automotive

Al-Futtaim Automotive, one of the main five operating divisions within the UAE based Al-Futtaim Group of companies, is a conglomerate of motoring-related businesses, franchising some of the world’s most-recognised automotive brands and services.

Operating in 10 countries across the Middle East, Asia and Africa and empowered by around 9,000 associates, the UAE-headquartered Group’s services span across distribution of new and used vehicles, manufacturing, leasing, and aftersales. 

Ranging from passenger cars to SUVs, commercial vehicles, industrial and construction equipment as well as motorbikes and quads, Al-Futtaim Automotive Group offers an integrative customer-centric experience for motorists, fleet operators and contractors alike, and strives to become the leader in tailor-made mobility solutions. For more information visit www.al-futtaim.com 

Follow us on LinkedIn 

https://www.linkedin.com/company/autorolasolutions/

Kia Austria was one of the first OEM customers in Austria to use Autorola’s Fleet Monitor workflow monitoring tool that supports vehicle fleet owners of all sizes to process their volumes in the most efficient and structured way – from acquisition to disposal.

Managing the whole vehicle life cycle

Kia has now been working with Autorola’s Workflow Management System for over ten years with the platform managing the whole vehicle life cycle and finally selling its used cars on a closed dedicated auction platform to its dealer network via a Branded Site.

When Kia Austria dealers visit the Branded Site to inspect and bid on vehicles online it has the look and feel of the Kia brand giving them trust and confidence to buy vehicles from the national sales company.

“We only work in one system”

“From the time a vehicle is specified and ordered with the factory we only ever work in one system, which is interfaced with all our other core systems.

“It is a huge advantage to handle our cars in an automated workflow which secures our processes and guarantees the best possible lead times for every part of the vehicle management process,” said Katharina Williamson, Kia Austria’s Fleet & Used Car Manager.

The online communication with third party suppliers is also part of the Fleet Monitor construction, when it comes to pre-delivery inspection, handover of company and press cars, changing of tyres and all other relevant services. Fleet Monitor has been designed to improve a vehicle fleet’s services and lead-times in all aspects of their in-fleet and de-fleet processes.

System integration improves workflows

The integration between systems allows Kia to combine a flow that supports their business model and allows them to plan and control all activities from one single access point.

“Selling the vehicles via our own branded auction is easy and with Autorola we are assured of always using an innovative and up to date version of a modern online auction environment,” explained Katharina.

Getting rid of Excel spreadsheets

“Before we started the partnership with Autorola our main target was to get rid of Excel spreadsheets completely, which was very soon achieved. Another huge benefit is the tailormade set of reports available to us,” she said.

Further developments, like the INDICATA used vehicle insights data integration which gives a live market overview in terms of pricing and market values, have made the system even more sophisticated.

INDICATA Italy saw a big increase in demand for its used car data insights during the Covid pandemic. That demand contributed to a good business performance in 2021 with many dealer group customers coming on board during that time.

Italian dealers use INDICATA to check how competitive their used cars are against local rival dealers. They know if their used cars are not competitively priced, they will not sell as consumers spend more time doing homework online to find the region’s most competitively priced used car.

Used car demand falls as new car supply improves

This demand for quality used car data has been accentuated by the demand for used cars falling in Italy now that new car supply is improving. INDICATA has become a valuable tool for dealers to help retain a high stock turn and profitability.

There are around 1,000 franchised dealers in Italy and INDICATA can provide the entire country’s used car data in a single dashboard which can be interrogated by make, model, age, fuel type, sales, and stock turn.

INDICATA Italy currently has eight OEM customers, and their needs are slightly different from dealers in that they like to understand how their used stock is priced against similar stock on a national basis.

INDICATA helps identify which cars to export

Currently 70-80% of used cars in Italy are sold locally by dealers, the rest are exported. INDICATA used car insights are helping dealers identify where in Europe used cars are worth the most money. The Autorola Group is also on hand to help the dealer with the export process including filling in paperwork and managing transport when required.

As INDICATA Italy received traction in the market it launched a successful webinar in December 2021 which regularly sees up to 200 people dial in to hear about the latest used car price trends and insights.

Hosting a successful webinar

“We continue to provide the Italian remarketing industry with insights into the used car market via our bi-monthly webinar. Since starting the webinar, it has grown into a powerful tool to build relations with the entire used car industry.

“It has all been about proving that INDICATA used car price insights can help dealers make more strategic decisions. We have also used LinkedIn to stay in touch with dealers. They know and trust the INDICATA brand,” he added.

Motor K partnership

INDICATA is also celebrating a partnership with automotive technology company Motor K which has grown over the last two years. Motor K develops integrated digital solutions to support the sales and marketing activities of automotive manufacturers and dealers, helping them create value for their end user customers.

They are using INDICATA Web Services which enables companies and end users to evaluate used vehicles in each market using INDICATA’s real-time market intelligence to analyse the vehicle’s market supply, demand, and pricing.

Web Services integrates with Motor K’s web platform

Web Services has been designed for larger asset owners such as financial institutions, fleet financing companies, automotive OEMs, membership-based organisations, and online automotive retail companies. The software easily integrates with standard IT systems such as Motor K’s web platform and is supporting the company which is now working in eight countries.

“We will look to work with more trusted technology partners in the future with our used car insights plugging into their systems and powering a wide range of website-based services for their customers,” explained Pietro.

Solutions Trade-In App launched

INDICATA Italy is to provide more used car data to leasing and insurance companies and banks in 2023 and 2024. It has also launched the Autorola Solutions Trade-In App which provides a full vehicle inspection platform for dealers which when integrated with INDICATA gives them a powerful tool to appraise the condition and value of their used vehicle trade ins.

“We will continue to see our customers use more Autorola and INDICATA services as they are all integrated with each other. We can help customers provide support at every stage of a vehicle’s life cycle,” said Pietro.

Used petrol and diesel cars dominated the European market in May taking 42.7% and 42.1% of sales with hybrids and EVs creeping up to 11.7% and 3.4% respectively.

But the most interesting trend currently is the balance of Market Days’ Supply (MDS), which represents available used car supply divided by its current sales rate.

Used diesels remain the fastest-selling powertrain, with an MDS of 59 days closely followed by petrols at 62 days. Hybrids are a little way behind at 81 days with EVs trailing at 110 days.

Used EVs are gaining traction

There is no doubt that used EVs are gaining sales traction now that prices have fallen as their MDS fell by 16 days in May alone, but the big challenge is the speed at which fresh stock is coming into the market.

EV sales are not keeping pace with stock levels, which is causing challenges for vendors in some countries as they try to optimise stock turn and sale prices. The one exception to the rule is Tesla with both its Model 3 and Model Y.

According to our latest INDICATA report the Tesla Model Y is Europe’s fastest-selling used car, even when compared to all ICE cars while the Tesla Model 3 remains Europe’s top-selling BEV.

Used Teslas have become more affordable

Tesla made the unpopular decision to drop new car prices, but it seems to have had the desired effect in the used market as the brand’s products are selling strongly as they have become more affordable.

This comes at a time when other mainstream brands have started to launch more used EVs into the market. This includes a raft of Chinese brands that are starting to arrive in Europe with a range of highly specified, high value electric cars.

As used EV prices reach their natural level over the coming years it will be interesting to see where OEMs set their own price levels to keep growing new EV car sales to meet their Clean Air For Europe (CAFE) emissions targets and to avoid costly EU fines.

Relying on a strong used market

The success of new EV sales relies on a strong used market. It will remain a balancing act to keep new EV sales growing whilst supporting the used market to cope with the growing number of EVs arriving at auction.

Rest assured our INDICATA Market Watch used car insights report will continue to track used demand, stock turn, prices, and sales trends for all fuel types on a monthly basis. Read the full INDICATA Market Watch report here: www.indicata.com

For a free copy of the latest INDICATA Market Watch report go to www.indicata.com