NEWS

Autorola France country manager Pierre Emmanuel Beau is reporting strong business growth on the back of a fast moving new and used car market

Written by Autorola in category 
July 3, 2024

 

The French used car industry is like many other countries in Europe with sales of new BEVs growing but with demand for used BEVs remaining very slow.

New car sales are up 4.9% in the first five months of 2024 with BEVs accounting for 18.9% of those registrations all of which is being fuelled by the French government’s commitment to phasing out petrol and diesel cars from the country’s roads by 2040.

Bearing in mind the French market was predominantly diesel for such a long period of time the change to a low or zero emission car parc has happened extremely quickly.

Adapting to a changing market

Hybrids are also making an impact in the new market accounting for 36.7% of sales so far in 2024 while diesel sales have shrunk to just 7.5% of sales. Autorola France is already supporting its customers in adapting to the changing market with a cross-border service which is seeing unwanted used BEVs being exported to other European countries.

Many French used BEVs are now ending up in Portugal, Germany, Belgium, Austria, The Netherlands and Denmark where countries are short of certain BEV models. This cross-border service powered by the MarketPlace online platform is an important one that is helping vendors free up cashflow and improve their stocking days.

Exporting used cars

“France continues to export many used cars and we are pleased to be able to support our customers. They are pleased to outsource this service to us as they know we take away all the hassles including managing all the paperwork and pan European logistics if required.

“Demand for used BEVs is lower than ICE cars currently and we are helping vendors find homes for these cars,” explained Pierre.

This growth in cross border activity is just one of the reasons Aurorola France continues to grow its business revenues. In 2024 the business is already 60% up on the first six months of 2023 after experiencing a 75% growth in revenues between 2021 and 2023.

One of the five largest remarketing companies

“The Autorola brand is known and trusted in France now for online remarketing. We are one of the five largest remarketing businesses in the country and our online MarketPlace proposition is still one of the best for both in country and cross border-sales in a market that is very competitive,” said Pierre.

The new and used car market are fast moving and more dealer and OEM vendors are turning to Big Data to help support their decision-making process. Many have already turned to using the INDICATA used car pricing platform to help them make the right remarketing decisions on the different fuel types that are coming back as part exchanges or ex-fleet cars.

BEVs accounted for just 4.32% of May’s used sales but 8.91% of online B2C stock at the start of June according to INDICATA’s latest Market Watch report, which will put further deflationary pressure on pricing.

Used BEV stock imbalance

This imbalance between BEV stock and sales explains why BEVs have the worst Market Days’ Supply in France by some margin at 146 days compared with 51 days for diesel used cars which are the fastest moving.

“Vendors are using INDICATA data to manage these challenges in the used market. From helping dealers value part exchanges to helping them adopt a competitive pricing on strategy versus local rival dealers INDICATA is providing vital retail data.

“We are also using this data to help dealer group vendors decide when to retail used cars in France and when to export them to other markets where they can make more money. This has helped support a 100% increase in INDICATA revenues over the past 2-3 years. It is another case of us being able to support our customers in managing their used vehicle inventory more effectively,” said Pierre.

Raw data

Five colleagues are now employed just in the INDICATA department alone and as well as providing data insights via the usual customer dashboard some OEMs are now buying raw data to help develop their own macro and micro used car analysis.

“More time and effort are being spent by OEMs and their dealers to make the right decisions. It is no longer suitable just to use a gut feel alone on how much a used car is worth. The experience of individual used car experts now must be supported by data insights such is the speed at which the French market is moving,” he added.

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