2020 was a turbulent year for the global economy, but its huge effects on the Brazilian economy cannot be underestimated. With vehicle production lines in the country paralyzed for several months, the trickle-down effects of this paralysis continue to affect the country’s economy and Autorola’s results today. The continued shortage of new vehicles in the market has, as a knock-on effect led to a shortage of used vehicles across Brazil, which has ultimately slowed business growth.Autorola Brazil grew in 2020
However, despite the economic and physical constraints placed upon our operations, Autorola Brazil managed a year of growth, and remains in a good position to make the most of potential growth in the coming months.
Driven in part by the strength and expansion of the rental market in the preceding years, 2020’s results were buoyed by a strong mix of major new business wins. Toyota Bank, Hyundai, BMW, Porsche, Lease Plan, and other leasing companies, all joined the client roster of Autorola Brazil, which meant that while growth may have slowed, the company was well-placed to weather the financial turbulence of the year, maintaining the continued period of overall growth which it has enjoyed since 2018.Marketplace and Solutions working hand in hand
The Marketplace online platform has continued to perform well in Brazil, and the underlying support that this success brings to the business cannot be underestimated. The symbiotic nature of Autorola Marketplace working hand in hand with Autorola Solutions makes for a very strong business proposition for our clients. The strength of these two together continues to underpin Autorola’s core business success.
A further big business win came in April, when a year’s pilot scheme was concluded with great feedback and a successfully won tender process with Volkswagen Bank Brazil. Representing a major contract win for Autorola Brazil, VW Financial Services and its leasing/rental company have onboarded the Fleet Monitor package.A perfect fit for VWFS
Prior to beginning the pilot scheme with Autorola, VWFS had been unsatisfied with previous attempts at fleet monitoring with other providers. In a country as large and as geographically diverse as Brazil, the accountability and traceability of assets is a key concern for lenders, and so the need for a reliable, diligent and technologically advanced solution is key, which made the Fleet Monitor package a perfect fit for the bank.
A well-known feature of the used-car market in Brazil has historically been the lack of consumer confidence in pre-owned vehicles, owing to a lack of reliable quality controls in place across the country. However, for VWFS, the potential for added transparency around vehicle condition aided by Autorola is hoped to be the first step towards strengthening the used car market and encouraging a long-term increase in used car values as consumer confidence builds.
The on-boarding process for the pilot scheme was carried out entirely remotely via a series of tutorials, and over the course of the trial, the financial arm of VWFS and Its leasing/rental company were highly impressed with the service offered by Fleet Monitor, as it allowed them to fully track its fleet assets at once, in real-time.Fleet Monitor impresses clients
Importantly for Autorola going forwards, its main financial client is expanding in Brazil and is looking to expand the use of Autorola throughout its dealership network as a result.
Currently, a good percentage of their dealerships are using the Market Place (white label) package for internet auction sales, which allows every dealer in the country, no matter their location, to bid for any vehicle in the same condition as all the others, with the confidence and transparency that Autorola processes bring to the business. Inspection reports add value and trust to the buyers.Sustained growth
The potential for sustained growth is huge as Autorola’s main client plans to increase its fleet in a serious manner with projection to expand gradually from over 10,000 to over three or four times within a decade.
Alongside this core business expansion will come an increase in the size of other fleet clients, a process from which Autorola has already begun to benefit. A fast-growing Brazilian mobility start-up decided to buy its entire fleet off a financial institution, and it did so via Autorola – leading to the sale of 2,203 vehicles in a single day – a record result for the entire Autorola Group.Launching a de-fleet function is next on the priority list
With the uplift in clients, the next step for Autorola Brazil to deepen its market penetration will be introducing a de-fleet function, allowing for more of an end-to-end service for its corporate clients than is currently achievable.
Overall, however, while the situation surrounding the Covid-19 pandemic in Brazil continues to impact the economy, leading to several large economic sectors predicting a slow bounce back over the coming years, Autorola Brazil is proving that exceptional sales figures can still be achieved, and that strong growth is still possible in tough economic climates.Marcelo Barros
(Country Manager).Click here to go back to the August news