NEWS

Toyota Motors Europe (TME) has announced a major new contract with INDICATA Europe to roll out its used car pricing data to 13 countries over the next two months.

INDICATA has developed a bespoke reporting suite for TME that tracks all the online used Toyota and Lexus adverts from its own dealer networks across Europe and presents it into an easy-to-read dashboard for each country.

Ability to view used cars at a macro and micro level

This gives TME the ability to view the successes of each of its models at both a macro and micro level in real time. It can view stock advertised levels grouped by brand, model, engine type, vehicle age and mileage by country and track the evolution of pricing and sales volume trends.

The INDICATA contract has already gone live in France Belgium, Spain, Italy, and the UK. From the end of April INDICATA’s data will also be rolled out in Austria, Denmark, Germany, The Netherlands, Poland, Portugal, Sweden, and Turkey.

Used car intelligence

TME has been impressed at the power of INDICATA’s used car business intelligence to aggregate used car stock data in real time. It can be dissected in a variety of ways using filters in its reporting dashboard.

Toyota Motors Europe’s spokesperson said “We are excited to be working with TME to provide them with a real time overview of its Toyota and Lexus stock being sold by its dealers. It will generate some valuable trends data for the brands to enable them to understand how their models are performing in Europe’s used market Europe country by country.”

Andy Shields, the business unit director of INDICATA, has given a talk for the Fleet Europe Remarketing Expert Track.

In a short, fact-packed talk, Andy explains the market forces that were in play at the beginning of 2021, which caused a marked weakness in BEV values early in the year.

Oversupply of BEVs affects market forces
This initial weakness in values was at first hard to understand, as BEVs as a segment had experienced a high year on year sales growth between 2020-2021, although prices had failed to rise to match the market demand.

One of the main drivers behind the lack of price growth was the oversupply of BEVs by manufacturers at the start of 2021, which flooded the market and suppressed the used process.

Response to EU CAFE rules

This oversupply was a response to the introduction of the EU’s CAFE rules, in which overall C02 emissions were capped for manufacturers across their entire vehicle ranges. With strict financial penalties being enforced for every gram of C02 produced above the limit, many manufacturers turned to an oversupply of BEVs at the start of the year as a means of lowering their average emissions.

Two main factors have been behind the value recovery in BEV values over the course of 2021, the easing of the CAFE targets, and the simultaneous global microprocessor shortage.

Reduced pressures to produce EVs

The easing of the CAFE targets for years 2021-2022, coinciding with many manufactures having updated engines and drivetrains across their model ranges for greater efficiency has meant that the pressure to produce zero emissions vehicles to meet the stringent first-year targets has lessened.

At the same time, the microprocessor shortage which has hit global manufacturing in the last 12 months has been felt more keenly across the manufacture of BEVs than traditionally ICE engined vehicles, which has led to supply of these vehicles now lagging demand.

As a result, used BEV prices have stabilised over the last 12 months, and with research from the Boston Consulting Group suggesting that microprocessor production will not recover fully until 2024, BEV prices will remain stable for the next 24 months, if not longer.

To watch the video in full and hear Andy’s insights in greater detail, please see the video in full here:  https://www.youtube.com/watch?v=DnCfXhnrtdM

Since 2019, the automotive industry has gone through a period of global upheaval, beginning with the COVID 19 pandemic and its subsequent lockdowns, which then led into the global microprocessor shortage which has slashed new car deliveries.

For many in the industry, it has been a challenging time, however for Autorola Group, our ability to assist our customers in effective trading despite these challenges has meant that the last two years have been a time of record growth and expansion for the group.

Fleet Monitor has reported record growth

Fleet Monitor has become a key software platform for anyone managing vehicle assets more effectively from cradle to grave. As new vehicle lead times have stalled, leasing cycles have been widely extended as a result. With the increasing pressure on this vehicle stock, fleets, manufacturers, and finance companies have been relying on the Fleet Monitor package to better manage their vehicles.

As a result, we have seen a strong two years of growth within this business unit, driven partly by the utility of the platform, but also due to the hard work of the Fleet Monitor team to maintain and develop deep relationships with customers to bespoke the platform on their behalf.

MarketPlace is in high demand

As different territories within the EU underwent various cycles of restrictions in response to COVID 19, dealers have turned to importing used cars on our MarketPlace online wholesale platform to cater for increased used car demand in their countries. Market Place proved an invaluable asset to dealers during this time, as more than ever, the ability of stock locator to operate across borders meant that appropriate vehicles could always be located and purchased by dealers, no matter the distances involved.

As we continue to grow the features of the MarketPlace platform, so the head office team also continues to grow.

INDICATA helping traders to manage volatility

INDICATA is also continuing a period of strong growth, as at time of market volatility our unique blend of business intelligence and up to date market insights has allowed OEMs, Dealer and fleets and financing houses to always remain ahead of changing market conditions. Now more than ever, the strength of the INDICATA proposition is proving to be invaluable to businesses.

The recently launched INDICATA  stock locator product has been instrumental in helping dealers to manage their stock levels despite the current pressures, giving them the ability to locate appropriate vehicles from across the continent to fill any gaps in their local markets.  

In response to this growth across the group, Autorola Group has purchased new additional offices near our existing headquarters in Odense in order to accommodate our ever-expanding team headcount, which will leave our existing office space for the INDICATA team to call their own. We foresee that the market conditions are likely to remain changeable for some time to come, but thanks to our ongoing investment in our teams and new state of the art offices, Autorola Group looks set to succeed alongside our customers.

European used car prices rose dramatically in the first two months of 2022 as the used market continues to be starved of stock according to INDICATA’s latest used car insights report.

Average used car prices have increased by an average of 7.1% since the end of last year across the 13 European countries as they continue to suffer from a shortage of used stock due to new car sales compromised by global semiconductor shortages.

Majority of markets experience used car price rises
Since December 2021 Italy, Austria, Belgium, and Germany all saw price increases by more than 7 percentage points going into March 2022 equivalent to between a 6.3% and a 7.2% increase. Turkey average used car prices rose by 18.6% between December 2021 and January 2022 with foreign currency exchange rates and supply challenges driving much of that uplift. Average prices have dropped by 3.2% over the subsequent two months.

Meanwhile the United Kingdom has seen average prices fall 1.1% between the peak in January and March with trade buyers and retailers showing little appetite to push up prices. However, they are still 33.2% higher than back in May 2021 when prices started to rise.

Used demand exceeds supply
All countries are operating in a market where used car demand exceeds supply and this looks likely to remain unchanged as restricted new car availability forces leasing companies to extend contracts and lead times impact on dealers delivering new cars to retail customers.

Dealer stock levels fell by between 4.2% (France) and 39.9% (Poland) year-on-year and in February sales were 4.4% lower than January. All thirteen countries in the report saw February YTD sales fall by 0.9%.

Dealer stock levels fall
Moving from February into March dealer stock levels showed few signs of improving with markets like Portugal and Poland suffering from a 7.2% and 6.3% fall.

Meanwhile, used Battery Electric Vehicles continue to grow in popularity with stock turn getting closer to petrol and diesel although there is still some way to go. Diesel stock turn was the highest in February.

‘High prices will continue’
“The high prices will continue to show no signs of abating until the new car production issues are resolved,” explained Andy Shields, INDICATA’s global business unit director.

“We are seeing some mainland European markets looking to import and export used cars to balance their needs but not in big enough volumes to resolve supply issues. The market continues to experience unprecedented issues and looks very unlikely to return back to normal until well into 2023,” he added.



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

As we begin a new year, it seems that many of the challenges faced by the used car market in 2021 will remain with us for some time to come.

As the supply of new vehicle stock seems likely to be slow in returning to the levels that were seen before the pandemic, we will continue to see increased pressure on the dealers and fleets to make up for the shortfall in new stock from OEMs.

Limited quantities of used stock should not be seen as limiting the business potential for dealers in the year ahead, as in many European markets the volume of sales has increased. What it does mean for dealers is that to retain a competitive advantage in a pressurised market, the ability to move quickly to secure the right stock, and a willingness to consider cross-border purchases or sales will be crucial in the coming months.

Fortunately, we have seen that more customers than ever are able to rely on Autorola and its business units as trusted partners to achieve all of the above.

Our INDICATA team are trusted experts, with the ability to provide real-time data and valuable insights for dealer groups to help them make strategic business decisions. We know that users benefit from increased stock turn, a better price to market and less chance of being stuck with over age stock, which is crucial at times like this.

This newsletter is our first of 2022, and will touch on what is happening around the group.

The latest Market Watch report is now live and gives deep insight into the market conditions across Europe, as well as predictions and emerging market trends for the year ahead. For anyone involved in the motor trade, it is essential reading.

We also dive into the fastest and top selling vehicles of 2021, which is also part of the Market Watch. If you want to know what buyers have been looking for across European markets, but do not want to read the fuller report, this will give you a top-line overview of the market.

Lastly, do not miss the introduction to Autorola Group’s latest dealer group offering, the integrated fleet monitoring package, which is explained by Autorola’s Global Director, Ib Kimose.

I hope that it proves an interesting read.

Peter
Best regards
Peter Grøftehauge (LinkedIn)

Now more than ever, the pressures of a fast-moving retail environment and the relative lack of available vehicle stock means that dealer groups are having to react quickly and manage their processes effectively in order to retain a competitive edge.

With a market which requires flexibility, rapid decision making and above all, the need for accuracy of data to facilitate these decisions, it can be a challenge for dealerships within this segment to keep track of the multiple data sets and forecasts which are needed to keep ahead of the market.

Autorola Solutions Fleet Monitor platform has been designed from the ground up to offer a simple, secure and scalable management solution for dealer groups. With the ability to integrate diverse systems seamlessly onto one easy to operate interface which can sit within or alongside an existing dealer management system, Autorola Solutions gives dealer groups the ability to manage incoming stock, existing stock, and KPIs in real-time.

With Autorola Solutions in place across dealer groups, vehicle lead times are reduced and, thanks to the ability to implement better workflow structures, the lead time between preparation and sale of each vehicles minimised. Put simply, it maximises dealership efficiencies.

On top of this, Fleet Monitor’s live market view offers a dynamic and up to date pricing tool, enabling dealers to enjoy a complete overview of current pricing and market demand trends, guaranteeing that stocklists don’t become over-aged as the market evolves.

This short video gives a clear overview of the whole solutions platform and is well worth 2 minutes of your time – see video here.


For any dealers wishing to ensure the ultimate edge in business, or who are looking to guarantee maximum efficiency across their business, Autorola offers a consultancy service, bringing expertise to companies wishing to optimise their businesses in a rapidly changing marketplace. If you are looking to secure a good result for your dealership group in 2022, contact your Autorola representative to see how our experience and insights could be of benefit.

• The VW Golf remains as the top-selling car overall and ICE car
• Renault’s Clio and the VW Polo are second and third place in both tables
• Toyota has a clean sweep of the hybrid top three with its C-HR, Yaris, and Corolla
• Renault’s Zoe leads the way again in the BEV list followed by the Audi e-Tron and BMW i3

• Skoda’s Enyaq is the fastest-selling used car overall and tops the BEV list
• The MG3 is second to the Enyaq and fastest-selling ICE car
• There are a mix of BMWs that appear in the ICE, hybrid, and BEV table
• Lancia’s Ypsilon is Europe’s fastest-selling used hybrid

View the top-selling and the fastest-selling tables for 13 European countries in our latest Market Watch report at www.indicata.com/corona

All 13 countries featured in our INDICATA Market Watch insights report recorded major used car stock shortages as they entered January 2022.

These ranged from 6% in France to 26.2% in Germany while Italy and the UK fell by 24.4% and 10.3% respectively.

Our INDICATA team expects record prices will remain across Europe during 2022 based on consumers buying used cars in preference to new cars which are restricted by the global semiconductor shortage.

During 2021 prices rose to record levels across Europe with double digit increases in the UK (32.6%), Poland (20.9%), Spain (19.9%) and Germany (15.2%).

Despite these high prices Europe’s online B2C used car sales were 9.0% higher than 2020 and 7.4% above 2019 levels which reinforces demand is very high and continues to exceed supply.

In December six countries experienced year-on-year sales growth. This was despite low used car stock levels, high prices and a seasonal market slowdown, Seven countries meanwhile reported a fall in sales including Germany.

“The market continues to operate at a new normal where demand and prices are high and stock levels are low,” explained Andy Shields, INDICATA Europe’s business unit director.

“Fleet volumes will not increase as companies extend their contracts in the absence of new cars being available while rental companies are buying rather than selling used cars.

“Dealer part exchanges are limited so dealers have to work harder to source the right cars and sell them quickly as they are paying more than 30% higher prices for cars than 12 months ago,” he added.

Used diesel continued to sell fast in December at 6.5x with used petrols also selling fast with a stock turn of 5.5x. Used BEVs are now consistently selling as quickly as other powertrains at 5.4x and in Denmark and The Netherlands were the fastest-selling fuel type.

Remarkably the Volkswagen Golf retained its position as Europe’s top-selling used car up to four years old followed by the Renault Clio and Volkswagen Polo. The Renault Zoe was the top-selling BEV followed by the Audi e-Tron and BMW i3 while Toyota took a clean sweep in the hybrid category with the C-HR, Yaris and Corolla.

For a full copy of our 13-country 34-page report go to www.indicata.com/corona.

2021 has been another challenging year for the automotive industry – first with the Covid-19 pandemic and then with the global semiconductor shortage which has impacted new car supplies.

However, the used market sector has performed very strongly with demand and prices high, but with stock levels falling in virtually every country we operate in.

Stock falling and prices rising
Our INDICATA Market Watch report confirms a year-on-year stock fall of over 20% and price rises of between 10-20% in some countries.

We have spent a great deal of time with both vendor and buyer customers helping them deal with the current market and prepare them to meet the challenges of 2022. That includes launching a new European stock locator that supports dealers who want to source and buy used vehicles cross border.

How is 2022 likely to shape up?
So, I asked our three business unit directors Morten Holmsten – MarketPlace, Ib Kimose – Solutions and Andy Shields – INDICATA for their views on how 2022 is likely to shape up and the hopes and fears which the markets will bring. They make for interesting reading.

Not surprisingly the speed at which companies are digitising their businesses has risen. More dealer leads are being received online which need to be captured and managed effectively, while asset owners are managing their vehicles via the Cloud as more colleagues switch to home working.

The online dream is becoming reality
We have predicted the move online for all aspects of sourcing, buying, and remarketing used cars for many years and the pandemic has accelerated this vision. The future for many has suddenly become reality and the digitisation of businesses will continue to gather pace.

We wish you a happy and relaxing festive season and look forward to supporting your business during 2022.

Peter
Best regards
Peter Grøftehauge (LinkedIn)

As 2021 comes to a close and we begin to look forward to the year ahead in 2022, we have experienced an extraordinary year in the used vehicle market, with Autorola continuing to help dealers access the stock needed to trade while more traditional physical avenues have been closed to them.