NEWS

Introduction from Peter

Apr 7, 2020   written by Autorola

Just two weeks after our last communication the used car market globally has changed again very dramatically.
The Covid-19 pandemic is affecting the majority of our countries and we are doing all we can to provide help and support to our colleagues, vendors and buyers.

Busy online platforms
Our online platforms have been very busy during the pandemic, but in some countries where the logistics businesses have been forced to close, we have had challenges in delivering vehicles.
We have launched Market Watch to help remarketing professionals make some sense of how used markets are responding to regional challenges.

Free market data and analysis
The data and analysis are free during the next few months so please take advantage and apply to receive either the Market Watch PDF or gain access to the online web portal.
Any insight or trend you can gain in these coming weeks will be highly valuable to your business, as will our Director of Marketplace, Morten Holmsten’s insight into cross border trends for diesels which we also feature in this newsletter.
Don’t hesitate to get in touch with any of my colleagues around the world if you need further help or support and please stay safe.

Peter

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Cross border trends show diesel cars are still in demand

Apr 7, 2020   written by Autorola

There had been no ‘significant change’ in total demand for used diesel cars across the global automotive market before the Covid-19 pandemic, despite local legislation having a regional impact, according to INDICATA data.

With some cities across the world banning the use of older diesel powertrains and, in certain cases, the complete ban of internal combustion engines, local demand has been disrupted. Yet, with supply and demand ultimately driven by vehicle owners – the overall impact on used diesel car sales globally is proving to be slow.

Consumers have become unsure about buying used diesels
“Of course, with all the media attention in recent years in some regions, consumers have become more unsure about buying a diesel vehicle – especially when politicians talk about excluding them from the big cities. However, at the same time right now consumers are just as untrusting of alternative powertrains,” explained Morten Holmsten, global business unit director, Autorola Marketplace.

With demand at a country-by-country level very much controlled by the local legislation, INDICATA data highlights that older diesel cars, especially, are being exported from Germany to countries like Ukraine, Poland and the Baltic countries where demand is greater.

Cross border is influenced by three key areas
According to Morten, such cross-border activity, is influenced by three key areas:
• Price gaps between the markets
• Shortage of used cars in a market
• Neighbouring countries trading arrangements

Also, influential but slightly less significant in terms of volumes, is the ‘the right car at the right time’ requirement of dealers.

“An example of these market dynamics at play is Portugal which has had a shortage of late used cars in the market, caused by reduced new registrations in the years after the financial crisis. This led to an extraordinary movement of vehicles to the country,” explained Morten.

Increased used prices in Spain

“Something similar has been seen in Spain, where increased prices in the Spanish market made it more attractive to import vehicles and less attractive to buy cars from Spain.”

Local legislation, according to Morten, is going to be the key driver of used vehicle market behaviour in the future – and not just in relation to diesel. Already the EV market looks set to be a key one for cross border activity in the future.

Morten said: “We can see that local tax benefits for EVs are already having an impact on registrations, such as in the Netherlands at the end of 2019 on new cars and, in early 2020 on company cars in Denmark.

EVs will be the next export trend in future years
“We will probably see an increased number of exported EVs from the Netherlands three to four years from now, simply due to the extraordinary number of new registered EVs in December 2019,” said Morten.


For more information, please contact Morten Holmsten, Mobile: + 45 40 97 31 00, Email: mh@autorola.com


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INDICATA launches free Market Watch used data in 13 countries

Apr 7, 2020   written by Autorola

INDICATA has announced the launch of Market Watch, a two-tier free data source for remarketing professionals.
Market Watch features used car market volumes and pricing data in 13 individual countries and provides ongoing analysis and trends at macro and micro level to help manage issues such as the current Covid-19 pandemic.
Market Watch is available as a:
• Regular PDF hosted on individual INDICATA country websites
• Web-based market reporting tool for leasing, rental, OEM and dealer group decision makers
Market Watch has published its most recent data analysis focusing on the impact on used car sales in 13 European countries during March and on used prices during March and April.

Used car sales trends – Europe (6-31 March)
Our graph shows the stark difference between the markets in full lockdown, and those with some residual used car trading. Indexing from week one in March, the resilience of Sweden retaining 80% of its used car volumes and Turkey, Netherlands and Denmark (66% of volumes) contrasts with the lockdown countries where sales have dramatically fallen towards zero.



Used car price changes – Europe (1 Feb–3 April)
Our table shows how prices have changed between 1 February – 3 April using the INDICATA Market Watch benchmark car basket. The Netherlands used car pricing split by segment reinforces the power of Market Watch at a micro level.



The first interesting observation is the lack of overall price movement in some countries and a correlation with the introduction in social distancing.
Looking at UK, Spain, Austria, Italy and France, who went into lockdown with the fastest measures, dealers had minimal time to react before closure and experienced the fewest number of price changes.

Dealers had more time to react to market changes
Denmark, Belgium, Netherlands and Sweden progressed more slowly into social distancing and their volume falls were slower than other countries. As a result, dealers had time to react to market conditions by dropping prices.
Market Watch also looks at individual country data by sector or fuel type. For instance, small cars in the Netherlands sustained values initially better than larger vehicles, both from a € value and a percentage, typical of a market slide.

Turkey’s market price bubble
Turkey’s 7.5% rise appears to show remarkable growth, however, if we overlaid recent market growth rates, we would have expected a 10% rise. A move to used cars as ‘a safe asset’ fuelled by a new car sales fall and relatively cheap consumer finance potentially creates a market price bubble.
“Market Watch gives further support to the used car industry to help make sense of how to manage the impact of Covid-19. Our PDF and web portal provide used car decision makers with the best real time data to help build a short term and long-term strategy to efficiently manage used car supply and demand,” explained Andy Shields, INDICATA’s global business unit director.
Go to www.indicata.com/corona to sign up to your free PDF or web-based data feed.


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Introduction from Peter Grøftehauge

Mar 19, 2020   written by Autorola


Since our February group newsletter, we have seen an unprecedented change in the economic climate caused by Coronavirus.
All our subsidiaries have reported a change in market dynamics while our global online remarketing portal, which hosts auctions in 24 countries, continues to support both vendors and buyers with their used vehicle businesses.

Download our free Covid-19 White Paper
Our INDICATA business unit is the global leader in real time used vehicle pricing and market analysis. It has used its Big Data and market knowledge to publish a free-to-download White Paper to help provide you all with a wider view on how the used vehicle markets are changing in Europe and are being affected daily by the virus.
By using its real time pricing data generated from tracking 9m online used car adverts daily across Europe the White Paper provides a country-by-country overview of how sales have been affected at various stages of the pandemic.
This data and analysis will help support you in making more informed business decisions over the coming days and weeks.
It gives businesses a more strategic overview of the used market on a Medium-Case, Best-Case and Worst-Case scenario, sector by sector (dealers, OEMs, contract hire and daily rental) with recommendations on how to combat these challenges.
We have provided a snapshot of the White Paper in this newsletter, but please feel free to download the document in full. We hope you find it useful and we aim to provide you with regular data used car industry updates during this global pandemic.

Download the White Paper here: www.indicata.com/corona

We hope you and your businesses stay healthy over the coming weeks.

Peter

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INDICATA White Paper highlights the impact of Covid-19 on Europe’s used car industry

Mar 19, 2020   written by Andy Shields


Download a FREE copy of our White Paper at www.indicata.com/corona

INDICATA’s analysis of nine million used vehicle advertisements across Europe captured every day enables our global leading real time used car pricing and market analysis portal to gain a strong view of used demand retail market pricing. Not only does this give the earliest warning of market challenges such as Covid-19, it also highlights potential opportunities for the industry.
Using these insights INDICATA’s business unit director Andy Shields has written an 18-page, free-to-download, White Paper to understand the immediate dynamics on the European used car market of the global Covid-19 pandemic.

Used vehicle sales fall across Europe
By analysing the number of vehicle adverts removed from the internet, INDICATA data assessed consumer used vehicle sales activity. Northern Europe saw a sales fall of 21.5% between 11-18 March, while southern Europe, including Italy, fell by 44% during the same period.
The White Paper highlights how the last recession played out for both the new and used car markets across Europe and how those same trends may repeat in a world dominated by Covid-19. It puts forward Best, Medium and Worst-Case scenarios – highlighting the challenges and impact each level of severity may pose.

Impacts by sector and contingency actions
The White Paper looks at the potential impact on the rental, leasing, dealer, OEM and OEM banking sectors and the contingency actions each one should consider taking.
In addition, it explores how China is getting control of infection rates, and how this may provide learnings for Europe.
Andy said: “Countries will have different challenges at different times and it’s all about equipping companies with the right data to help assist them to make fast decisions, which is where our pricing insights come into their own. We aim to support the industry with regular updates during the ongoing period of the pandemic.”

Download a FREE copy of our White Paper at www.indicata.com/corona

For more information, please contact me here: Mobile: +44 0 77 75 844 311, Email: ads@indicata.com

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Introduction from CEO & Founder, Peter Grøftehauge

Feb 21, 2020   written by Autorola


It has proved to be a fascinating start to 2020, not least of which due to automotive experts declaring 2020 as the ‘year of the electric vehicle’ and INDICATA pricing data highlighting the speed of change and variability in supply and demand of used cars in key European markets.

Evolution and insight
Highlighting the evolution of the industry and the need for automotive asset operators to proactively manage their stock, INDICATA’s pricing data has revealed just how the markets across Europe ebbed and flowed during the 12 months of 2019 – with fluctuations in supply and demand especially-in-relation-to-diesel during Q4

The speed at which used diesels have fallen out of favour for legislative and environmental reasons continues to be a challenge and will likely be that way for some time to come but INDICATA’s powerful pricing data insights is supporting dealers to manage these challenges across Europe.

Global agreement
This year has also seen Autorola Group sign a major-global-agreement with business process outsource organisation, MSX International.
The strategic partnership with MSX enables them to sell our market-leading Solutions vehicle process and asset management system to its global OEM clients. The combination of the two company’s automotive expertise launches an exclusive new online vehicle process management proposition to the global market.

Munich in May
And whilst we’re looking ahead, we are pleased to be a silver sponsor at the forthcoming Motor Finance conference and awards on the 20 May in Munich. Our international business development manager, Jurgen Claus will be speaking at the conference so please come over and meet the team.
See you soon

Peter

Autorola and MSX launches new OEM asset management partnership

Feb 21, 2020   written by Autorola


The new partnership between MSX International and the Autorola Group will see the global outsourcing business provide the Autorola Solutions online vehicle process management software to its OEM customers.
It is a unique offering in the market which both companies have developed over a 12-month period.

OEMS run some of the largest and diverse fleets
Solutions is already used by a number of companies in a number of different countries, and now MSX will provide Solutions to its OEM clients and their dealership networks that run some of the largest and most diverse fleets in the world.
Solutions has built up an enviable reputation for managing large fleets, from vehicle on boarding to remarketing. Every stage of the vehicle ownership is tracked to enable asset owners to keep a close eye on its vehicles.

Delivering bespoke asset management systems
Autorola will work with MSX to deliver bespoke web-based systems for OEM fleets that manage their vehicles on a regional level, not just from HQ. This includes setting up KPIs on every step of the vehicle management process.
“The partnership provides the perfect match, and we look forward to working with the MSX team,” explained Autorola Solutions business unit director Ib Kimose.
“OEM fleets are some of the most complex and we can set up Solutions to manage different processes for different types of car fleets. Our approach for managing leasing and rental fleets are very different to managing a press or management car fleet and Solutions can take this complexity and volume of vehicle management in its stride,” he added.

INDICATA reveals speed at which European dealers sold used cars in 2019

Feb 21, 2020   written by Autorola


INDICATA has released its used car data insights which reveal how quickly dealers were selling used cars during 2019, across each of Europe’s big five markets, plus Belgium.
The INDICATA market analysis analysed 12.78m petrol and diesel used cars sold by European dealers in 2019, with the Spanish market witnessing the most severe fluctuations in average days to sell (ADTS) for both petrol and diesel used cars.

Spain was a volatile used market in 2019
In Spain, January saw the highest ADTS for petrol and diesel at 95 and 102 days respectively. In June the petrol ADTS reduced to a 12-month low of just 60 days, while November was the best month for diesels at 68 days. That accounts for a major swing of 35 and 34 days respectively which shows the volatility of the 2019 used market for Spanish dealers.
Germany and Italy reinforced the tough time some countries are experiencing with used diesels. ADTS figures stayed above 70 and 77 days in Germany and Italy respectively during 2019, which is why some dealers – with the help of INDICATA market pricing data – are exporting used cars to reduce stocking days and to help identify fast-selling replacement stock to buy.

INDICATA gives dealers a region, country and Europe-wide used car insight
“The power of INDICATA as a vehicle pricing tool is that it can give vendors a region, country and Europe-wide overview of vehicle demand and prices.
“It’s all about helping dealers find the right buyer for their vehicles. INDICATA can help change their mindset and treat Europe as one single marketplace for selling as well as buying the right used stock,” explained Andy Shields, INDICATA’s global business director.

UK demand for used diesels grows while new car sales fall
At the other end of the scale the UK reported an annual ADTS low for diesels of just 48 days in both April and October, with used demand consistently strong despite diesel new car sales falling in the market by a record 21.8% during 2019.
In some countries a fall in diesel demand has been balanced by consumers buying more used petrol cars. Across 2019 demand for used petrols was strongest in France with an ADTS low of just 42 days in April. Even its highest ADTS month in December rose to just 55 days, while the UK also reported strong consumer demand in April with an ADTS low of 46 days.

INDICATA is helping dealers manage used car stocking challenges
“The speed at which used diesels have fallen out of favour for legislative and environmental reasons continues to challenge European dealers. It will take a few more years for the demand and supply of used cars to match the needs of consumers in individual countries. In the meantime, INDICATA’s powerful pricing data insights can help dealers manage these challenges,” said Shields.

French used car sales grow in Q4 2019 whilst diesel sales continue to fall

Feb 21, 2020   written by Autorola


The French used car market sprung to life during Q4 2019 witnessing a strong uplift in online used B2C sales of both diesel and petrol vehicles. This was in contrast to the UK which saw a decline in the sale of used petrol, diesel and EVs.
According to INDICATA’s used market insights data for Q4 2019 for the Big 5 countries plus Belgium, the French market was buoyant during the quarter. Used diesel sales in France increased by 13% (13,234 vehicles) whilst petrol volumes also rose by 13.8% (10,048 vehicles). Meanwhile, used electric vehicle sales decreased by -17.5%, mainly due to market supply falling.

Contrast with rest of Europe
The uplift in diesel and petrol demand in France contrasted with Europe’s remaining Big 5 plus Belgium all of which witnessed significant falls in online sales. Experiencing the greatest reduction in sales volumes across both diesel and petrol, as well as in EV sales, was the UK.

UK used car sales fall across all fuel types
Petrol proved to be the biggest loser during Q4 with B2C sales down -23.9% (-42,856 vehicles), whilst diesel fell by -22.5% (-33,770 vehicles). Used EV sales also reduced by 23%, caused mainly by a fall in market supply.
Online sales of diesel used cars also reduced by -15% (-24,068 vehicles) in Germany; -18.6% (-12,569 vehicles) in Italy; -5.4% (-2,184 vehicles) in Spain; and -11.5% (-2,064 vehicles) in Belgium.

France and Spain report growth in used petrol sales
Petrol sales were also down by -16.7% (-43,702 vehicles) in Germany; Italy -19.5% (-7,081 vehicles); and Belgium -6.6% (-946 vehicles). Spain was the only other market alongside France to buck the trend and experience an uplift in used petrol sales during the period, increasing by 1.2%.
“Q4 often sees a slowdown in used car sales in the run up to Christmas, but the period in 2019 was perhaps a reflection of the wider changes taking place across Europe with demand somewhat unsettled across all fuel types,” explained Andy Shields, INDICATA’s global business unit director.

Diesel sales continue to take the biggest hit
“Diesel continued to take the biggest ‘hit’ across many markets while EV volumes fell primarily on stock shortages in most markets. Only the French used market reported healthy growth across diesel and petrol, with used car registrations increasing across the year by 2.8% to 5.79 million.
“France was also one of the few European markets to report a growth in new car sales of 1.9%, although diesel registrations fell again to account for just one in every three new cars purchased,” he added.

MSX International and Autorola Group sign strategic teaming agreement, offering an innovative IT solution to the fleet and remarketing space

Feb 3, 2020   written by Autorola


Cologne, February 3rd, 2020 – MSX International (MSX) and Autorola Group (AUTOROLA) are pleased to announce they have entered into a strategic teaming agreement to provide the European automotive market with an end-to-end, fully integrated fleet and remarketing solution to accelerate business transformation and enable companies in the fleet and mobility space to become high performers.

For more than 25 years, MSX has worked closely with vehicle manufacturers around the world, supporting them in maximizing value and achieving measurable success through an innovative portfolio of automotive business solutions and services. As a global business process outsourcing (BPO) provider in the automotive space, MSX is now accelerating into the fleet business to offer OEMs a global managed services solution.
AUTOROLA is a global leader in online remarketing and automotive IT solutions for professional used car and fleet management. The teaming agreement is focused on Autorola Solutions (a business unit of Autorola Group) which offers lean fleet services based on state-of-the-art online systems. These work together to support efficient fleet management processes from acquisition to disposal for fleet, OEM and leasing companies.
The teaming agreement builds on the long-standing relationship between the two companies and aims to provide an end-to-end, integrated, web-based and modular fleet and remarketing solution that covers the entire lifecycle of fleet vehicles – from in-fleet and de-fleet processes to managing vehicle resale and post-sale services.

Two market leaders join forces to revolutionize the fleet and remarketing space and provide solutions to key challenges
In today’s highly competitive and growing fleet market, traditional fleet management models rely on multiple local or regional processes and systems which limit performance in the value chain. Therefore, it’s critical that companies operating in the European fleet and remarketing arena must, in the short term:

• Manage their businesses at a regional level, not just focus on the national market
• Connect easily with and leverage capabilities of multiple potential suppliers along the value chain
• Deploy mobility services
• Accelerate vehicle time to market to mitigate depreciation and lower costs
• Digitalize fleet vehicle lifecycle processes for accuracy and speed
• Use new retail channels for improved sales, brand recognition and customer loyalty

“By teaming strategically with AUTOROLA, we are able to enhance and expand our offering to our customers in the field of fleet and remarketing. The goal is to enable them to overcome key challenges and pain points that currently have a negative effect on their profit as well as to provide them with the right tools to seize market opportunities and support their digital future,” said Rob van Rijswijk, Vice President Product Management, MSX International. “Through this agreement and due to the innovative capabilities of our open and fully integrated solution, MSX will be empowered to act as the fleet and remarketing integrator, connecting additional, specialized third-party providers to one BPO platform.”
Peter Groftehauge, Autorola Group CEO, said, “Our strategic partnership with MSX brings forward a unique offering that is based on specialization, industry knowledge and cutting-edge IT solutions. The combination of our automotive expertise will bring fleet and operational performance to the next level.”

About MSX International
MSX International (MSX) is a leading provider of technology-enabled business process outsourcing (BPO) services to OEMs in more than 80 countries. MSX’s deep automotive industry expertise combined with advanced data analytics and custom software solutions improve the performance of automotive dealership networks by increasing revenue, reducing cost and enhancing customer satisfaction. The company’s broad BPO services suite supports OEMs across Warranty and Technical, Parts and Service, Channel Management, Customer Engagement, and Fleet and Mobility. MSX employs more than 5,000 team members worldwide.

About AUTOROLA Group
AUTOROLA Group is a global leader in online remarketing and automotive IT solutions for professional used car and fleet management. AUTOROLA Group is headquartered in Denmark and the company has currently approximately 420 employees and subsidiaries in 19 countries across Europe, North America, Latin America and Asia-Pacific. AUTOROLA Group is committed to a constant renewal process throughout the digital transformation. The company adapts constantly to the needs of our customers, always from an online perspective, to achieve success in the proper commercialization of used vehicles coming from in and de-fleeting processes. AUTOROLA Group is divided into three global business units: Autorola Marketplace, Autorola Solution and INDICATA.

Press contacts:
MSX International: Ioanna Dimopoulou
M: +49 162 1041928 | idimopoulou@msxi-euro.com

AUTOROLA Group: Ib Kimose
M: +4561629916 | iki@autorola.com


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