NEWS

• Structured and relevant information where and when it is required
• Seamless integration of technology, people, and processes for efficient and effective delivery of core business functions
• A one-platform solution to encompass all areas of their business with efficient processes for system users

It has been an interesting period for the German car market. It has been a time of upheaval, which has brought challenges but also opportunities in equal measure. With new passenger vehicle registrations in Germany having expanded by 14.9% during the first half of 2021 to 1,390,889 cars, compared to only 1,210,622 cars sold during the first half of 2020, it seems as though the underlying confidence is slowly returning.

However, much like the rest of the world, Germany is currently suffering from the effects of the micro-conductor shortage, which is playing out on a global scale. In the German market, it has meant that used car prices are at a record high, but with a downside that no new cars are expected to arrive in any large volumes until mid-2022 at the earliest- although this is a mere prediction at this point, no production schedules can be confirmed- this high demand is not expected to fall anytime soon.

Increasing focus on a niche market

Autorola Germany took the decision 18 months ago to establish a clear and well-defined practice for developing business leads. These results of this research led us to focus on developing a client base of companies with a parc of 500 vehicles or more. Autorola then began an internal project to investigate how many of these there were in Germany, researching them in depth to discover their pain-points in the de-fleet process and then introduce them to the Autorola online remarketing platform in relation to these.

The project revealed a potential list of 150 companies with fleets large enough to be of interest to us, and this relatively small target list meant Autorola was able to fully understand every business proposition before every approach was made.

We spent a long time developing a comprehensive business case and a compelling narrative with which to attract these companies. We demonstrated in each case exactly how Autorola could solve their specific problems, and how easy the resolution could be for them as a result.

The catchphrase coined for the project was “building a profit centre from a cost centre” and the time we spent at the research stage paid off. In a highly mature and competitive marketplace such as Germany, Autorola’s depth of knowledge of the companies we approached meant Autorola stood out from competitors from the outset, as it was able to meet large corporations on an equal footing, as the de-facto experts in our field.

Reaping the rewards in an increasingly digital world

With the current scarcity of available stock within the country, the decision has really paid off. By focusing so intently on larger fleets of 500 vehicles or more, it results in these companies’ de-fleeting an average of around 100 vehicles a year each. Even with the current propensity of fleets to hold onto their vehicles for longer than usual, the relative availability of de-fleet vehicles for Autorola Germany has proved to be of enormous help in the current circumstances.  

It has been also of great benefit to Autorola that the Marketplace product is purely digital, as it has put the business ahead of the curve in a changing business landscape, the acceleration of which has been driven by COVID.

“Our online, customer-focused approach is proving to be just what the new disruptors to the marketplace are looking for, which allows us to attract the newcomers, while still working with the more traditional dealerships who are evolving too,” said Lars-Alexander.

Unique messaging of a USP

“As a result of this USP, and the time we have taken to refine our messaging around it, the last 12 months has been one of success for Autorola Germany. We have been able to successfully convert leads into sales, helped entirely by the fact that not only is our online platform the best in class, but also, when combined with our sales team, INDICATA and SOLUTIONS, the strength of our proposition is hard to deny,” said Lars.

The traditional de-fleeting process could take many hours per vehicle, and involve multiple parties, however with Autorola, it involves just one point of contact and can take as little as four minutes per vehicle. Put simply, we help reduce liability, risk, and costs, while raising profits. For companies managing fleets of hundreds of vehicles, this a compelling message for any fleet manager to hear.

“Through this unique formula of our huge international network, targeted selling means we reach the right process with the right dealers while reducing client processes, we are confident in the continued growth of Autorola in Europe’s largest car market,” he added.

Click here to go back to the September news

Dealer stocks of used cars fell by 7.3% on average between the beginning of August and early September 2021 across Europe according to the latest INDICATA Market Watch used car insights report.

With sales demand rising and much lower than normal volumes of young-used-cars available from the ex-rent-a-car fleet the impact on stock levels is likely to worsen.

Stocks fall well below 2019 levels

Stocks of left-hand drive cars at the start of August 2021 were already 2.2% lower than August 2019 and that gap has widened to 8.8% lower at the start of September compared to the beginning of September 2019.

With used car sales up 13.9% for the first eight months of 2021 virtually every European market is reporting consumers are switching to a used car to avoid long lead times for new cars.

Used car inflation set to continue

With no signs of the semiconductor crisis coming to an end used car inflation is likely to impact all countries for another 12 months and possibly into 2023. The UK alone has seen prices rise by 16.6% in the first eight months of the year.

While there was a visible slowdown in used car markets during the August holiday period, EV sales increased by 7% compared with July. However, EVs achieved the slowest stock turn (4.8x) out of all the fuel types compared with 7.6x for petrol and diesel cars. Hybrid stock turn sat at 5.7x which is further proof that they are becoming an integral part of the used car industry.

Price inflation could last until 2023

“Used car stock levels fell in every country except Turkey in August and demand shows no signs of slowing up due to new car supplies still being compromised which may last until 2023. This means we will see price inflation in the used market continuing for many more months to come,” said Andy Shields, INDICATA’s global business director.

“We urge dealers to continue to review their forecourt stock pricing on a daily basis and to be prepared to raise prices to keep pace with consumer demand,” he added.

To download the 30-page INDICATA report go to www.indicata.com/corona

The new reports are available for each of the individual 13 countries in our new-look 30-page Market Watch report as well as for Europe as a whole.

VW Golf is Europe’s top selling used car

In August the VW Golf, the Toyota C-HR and the Renault Zoe were the top selling respective ICE, hybrid and BEV used cars. When considering all fuel types of the VW Golf was the top selling used car followed by the Renault Clio and VW Tiguan.

Meanwhile, the fastest-selling ICE, hybrid and BEV were the MG ZS, Mercedes GLA class and the Skoda Citigo which at their current selling rates means there is only enough stock in the market to last 21.8, 28.7 and 36.6 days respectively.

Mokka is Europe’s fastest-selling used car

When identifying the fastest-selling used cars across Europe the Opel/Vauxhall Mokka, MG ZS and Skoda Yeti made up the first three positions.

“We have responded to buyer and vendor requests for the best selling used cars by publishing these reports and will announce how more detailed data will be available to purchase in each of our countries in future months,” explained Andy Shields, INDICATA’s global business unit director.

To download the top selling and fastest-selling reports for 13 countries go to www.indicata.com/corona

We are pleased to continue our sponsorship of the Remarketing Forum which is part of the Fleet Europe Summit which is being held in Brussels on the 9-10 of November. It will be held at the Square Convention Centre, in the heart of the city.

The full-day remarketing forum is dedicated to the remarketing industry will bring discussion, case studies and networking for remarketing professionals.

The rest of the summit will feature four sessions for the fleet decision maker on sustainability, post-COVID-19 fleet management, corporate mobility, and innovation & technology.

We look forward to seeing you in person

We will have members of our MarketPlace, INDICATA and Solutions teams at the show who look forward to meeting customers, prospects, colleagues, and friends, many for the first time in person since the start of the Covid-19 pandemic in early 2020.

Early bird tickets are available here until 1 of October.

https://page-builder.hopin.com/events/fleet-europe-summit-2021/registration

If you want a meeting with any of our team to discuss your online remarketing, used car insights data or fleet asset management platform needs in more detail please get in touch with your country manager.