NEWS

European demand for used BEVs fluctuates as diesel remains the fastest-selling fuel type reports INDICATA

Sep 4, 2023   written by Autorola


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


Welcome to Autorola Group newsletter

Jun 26, 2023   written by Autorola



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)

Ib Kimose, Autorola Solutions global business unit director provides an update on our exciting new Al Futtaim partnership in the Middle East six months after its launch

Jun 26, 2023   written by Autorola

 

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 celebrates using Autorola’s Fleet Monitor workflow management system for 10 years

Jun 26, 2023   written by Autorola



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.

More Italian dealers and OEMs are using used car data according to head of INDICATA Italy Pietro Sportelli

Jun 26, 2023   written by Autorola



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.

INDICATA has published its latest Market Watch report which tracks insights on how EVs are performing in the used market in 13 European countries

Jun 26, 2023   written by Autorola


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


Welcome to the second Autorola Group newsletter of the year

May 4, 2023   written by Autorola



Welcome to the second newsletter of 2023. There is no shortage of activity within the global used market as it continues to throw up challenges for both buyers and vendors.

Used EVs continue to generate the most discussion. They are still selling slower than petrol and diesel used cars even though the fall in prices during recent months has helped increase demand and sales in some countries.

Average used prices are also now gently falling in Europe according to our latest INDICATA Market Watch report, except for Turkey where the country continues to write its own rules and in the UK.

The Netherlands features in our country profile where we talk to Frank Tanke about the country’s used landscape which is seeing many vehicles exported in search of maximising profits.

Treating Europe as one single used market is becoming more commonplace for leasing companies and OEMs as they use big data supplied by INDICATA to leverage price and demand.

Our interview with Jon Bulloch INDICATA’s European Business Development Director confirms the increased thirst for used vehicle data. The new agency model, cross border sales and the growing number of Chinese brands launching into Europe are all creating a demand for big data to help vendors make strategic remarketing decisions.

His team are already set up to provide the best live data and valuations. When combined with Autorola Solutions’ industry-leading back-end systems the proposition for vendors becomes even more powerful.

Its Fleet Monitor end-to-end asset and supply chain management system is popular with companies looking to improve their process mapping and overall asset management efficiencies.

Companies continue to search for these increased efficiencies as external factors continue to change the industry and their businesses. You can rest assured our Autorola, INDICATA and Solutions teams are working hard to help you face those industry challenges.

And while we have been interviewing colleagues from around the group Fleet Europe’s Frank Jacobs interviewed me about our group’s future plans. I shared news of our exciting plans for the group in 2023 and beyond as well as my thoughts on how residuals of Battery Electric Vehicles continue to change. I hope you enjoy the interview.

Best regards
Peter Grøftehauge (LinkedIn)

Fleet Europe interview: Autorola grows together with its customers

May 8, 2023   written by Autorola



Europe’s leading magazine Fleet Europe has interviewed our group CEO Peter Grøftehauge where he discusses our fantastic business performance in 2022 and looks forward to an exciting 2023.

This includes the growth of the Al Futtaim partnership in the Middle East, the launch of INDICATA’s new Residual Value forecasting tool and what the future looks like for Battery Electric Vehicle residual values.

Read the full interview here:

https://www.fleeteurope.com

 

Jon Bulloch INDICATA’s European Business Development Director discusses how big data will help dealers, fleets and OEMs deal with a rapidly changing used market

May 4, 2023   written by Autorola



The European motor industry continues to change at breakneck speed with each new development set to have a massive impact on the used car market.

The new agency model for instance will see franchised dealer groups focus more time on used vehicles as they create their own used vehicle brands and move away from the reliance on OEMs and new car sales.

The agency model could extend to used cars in the future when the OEM sells cars directly to the customer, which will further change the remarketing landscape.

Online purchase journeys

We’re working with traditional dealer network OEMs and newer agency model brands to offer Trade-In solutions to enable online purchase journeys and provide a solution to absorb trade-in volumes not covered by the traditional dealer model.

“We work in partnership with the OEMs to offer the best solution to match their circumstances. For OEMs with a traditional dealer network, we can supply fully underwritten valuations to enable the dealers to keep the trade-in vehicles they want and give us the ones they don’t want; for agency model OEMs we can provide a fully managed service to take all trade-in vehicles.”

New brands are joining the market

In the last 12 months there have been a multitude of new Chinese car brands launching in Europe. The success of these brands will depend very heavily on their cars being accepted in the used market.

“The extent of the changes in the industry over the next five years is massive and the thirst for used vehicle data will grow as the different stakeholders utilise it to make strategic decisions to optimise sales and profitability by country or across Europe.

“With no historical used vehicle data to refer to in Europe, brands will be looking for new insights into how their vehicles are performing in the used market. INDICATA is set up to help and support new and established brands as they change the way they interact with customers and their dealers.

Cross border sales are increasing profitability

“Our data is already helping pan European customers and their dealers identify where their used cars are making the most money. This cross-border strategy powered by big data is helping generate an additional 2,700 Euros per vehicle. It has given them the ability to leverage price and demand in a market where used cars are in short supply, whilst maximising the proportion of their brand cars sold through their franchised dealer network,” said Jon.

The USP of the Autorola Group is that we can supply complete remarketing solutions including the best live data and valuations from INDICATA, together with industry-leading back-end systems through Autorola Solutions. It provides full remarketing capabilities in terms of buying, selling and logistics of used vehicle sales across all of Europe and beyond, including all cross-border administration. The opportunities we can bring to OEMs, leasing and rental companies are huge.

Whilst used ICE cars comprise the majority of all of Europe’s used cars, the topic of conversation among most dealers and OEMs currently is used EVs which currently comprise just 5% of the market.

Dealers are split currently in that some are confident in stocking EVs and then selling them to targeted buyers while other dealers are sitting on the sideline and waiting for the right time to dip their toe in the water.

Helping support dealers

“Dealers are going to need more help as they transition towards their new future. We are all set to help and support them with our data and insights. We are working to partner with more systems providers to integrate our data into dealer software. We do not want them to have to move away from their systems of choice, instead we can integrate our data into the software they are already using via APIs,” explained Jon.

“INDICATA can provide powerful used car reporting and analytics via a dashboard that is quick and easy to use. Proactively informing dealers when cars are over age or are priced too low or too high with the competitors comes as standard with INDICATA. It is intuitive and constantly keeps a close eye on market prices and supply to become an extra member of the remarketing team. ”We can support OEMs, leasing and rental companies with a regular portfolio of valuations to help them manage risk in their fleets and maximise remarketing valuations. We’re launching forecast values this year across Europe to enable full revaluation and forecasted contract end-date valuation.”

Tracking the used market

INDICATA’s Market Watch report has been supporting dealers for over three years in tracking used sales, prices, and stock levels across 13 European countries.

EVs have created the most headlines in the report in recent months by reporting record prices and then as stock increased and the European economies started to experience inflation record falls. The reduction in prices has certainly helped generate demand and clear ageing stock but the power train is still yet to find its level within the European market.

INDICATA’s reports are also helping OEMs track the performance of their dealer networks on used cars. It enables them to identify opportunities to improve processes and maximise use car profitability.

Buying and selling at the right price

For dealers it is all about buying and selling at the right price and gradually mixing in stock with traditional ICE cars. Petrol is the favoured power train type in the majority of Europe while diesel continues to fall from grace, except for the eastern European countries where it remains in high demand.

“Countries providing incentives to buy and run new EVs are helping increase sales but often the challenge comes when these cars reach the used market. Each country must work out how to transition EVs into the used market over the next couple of years otherwise new sales will stall. As we get closer to 2030 the market will have to change and new and used prices will have to come down. INDICATA is keeping a close eye on all elements of the market to help buyers and sellers,” said Jon.

 

Vendors are making more money by selling used cars cross border according to Frank Tanke, The Netherlands country manager

May 4, 2023   written by Autorola

 


The quest for data from remarketing decision makers in The Netherlands continues to grow as they use it make strategic decisions as to what they sell, where and for what price.

The Netherlands has multiple customers now buying bulk data over the past two years including banks, leasing companies and dealer groups.

Leasing companies are constantly looking for the most profitable country to sell used cars that are coming off lease. There are a large number of leasing companies based in the country and they have switched onto the fact that selling their used cars coming off lease in other countries may be more profitable for them.

Exporting used cars

Between 70-80% of the country’s used cars are now exported by Autorola Netherlands. More Dutch used cars from leasing companies are exported to other European countries than to home-based dealers which makes The Netherlands one of the most transient remarketing nations within the group. Germany is its biggest customer taking around 70% of the total followed by Hungary, Belgium, and Portugal.

“With INDICATA we have the used car insights data in real time to help vendors decide where best to sell their used car and amazingly there is a big difference depending on the make and model in question.”

Export can increase disposal profits

“We have seen vendors generate an extra 3,000 Euros per car by using our data to locate the perfect country to sell their car in. Once the country has been identified our cross-border expertise goes to work in engaging with buyers in that country to team up cars with buyers,” said Frank.

“Buyers have confidence to bid on cross border used cars via the Autorola platform as they trust our process. We have an excellent reputation in looking after both the vendor and buyer,” he added.

Frank’s team employs three experts who fill in the 20 pages of paperwork needed to export each car. It aims to make it easy for vendors and buyers and why Autorola has become a leader in the field of cross border sales. They can also manage all the logistics involved in getting each car delivered completing the cradle to grave export approach. This helps fuel a profitable and proactive export service.

EV new car incentives

Since 2012 the Dutch Government has been one of the most eager in Europe to introduce incentives for companies and drivers to reduce their CO2 by getting them out of ICE cars and into EVs.

Drivers now base their new car decision on the reduced tax they must pay rather than the brand they aspire to. This has reduced brand loyalty in the new car sales market, but that doesn’t always carry over to the used market.

Tesla is a very popular in The Netherlands and tax incentives, which last five years, helped the brand sell 20,000 Model 3s in December 2019. It means vendors will be seeing these cars coming back into the market in December 2024 which will provide significant challenges for vendors.

Used EV stock levels continue to rise

Much of the time the best option is to export the car into another market but when the used EV sector is still in its infancy that does not provide an immediate and quick answer. Stock levels have continued to rise over the last six months in the country and there could be greater incentives needed to speed up the sale of cars.

“It is great to see incentives being offered to buy new and used electric cars, but it does not take account of the substantial number of ICE cars that are already in the market as used cars. Diesel has fallen from grace which means that cross border sales are often the only answer to shift stock out of the country as they have been devalued in the home market by these Government incentives.

Diesel popularity continues to fall

“In our latest INDICATA Market Watch report diesel has become the third most popular powertrain as hybrids start to take over its position. Petrol used cars continue to be the most popular accounting for nearly two thirds of all used cars sold. The market continues to change, and we are helping vendors and buyers to come to terms with these changes with our online MarketPlace platform and INDICATA used car insights working together,” said Frank.

“Our business continues to be at the heart of the modernisation of the used car industry and we look forward to growing our volumes as new car supply starts to help feed more used cars into our market,” he added.