Car trade strategy

K-Auto is a leading operator in Finnish car trade, and its operations comprise the import and sale of new cars, used car sales, extensive servicing and repairs, spare parts, car leasing, and K-Lataus EV charging. K-Auto’s over 1.3 million customers are served by some 1,300 professionals. K-Auto brands include Volkswagen, Audi, SEAT, CUPRA, Porsche and Bentley passenger cars and Volkswagen Commercial Vehicles in Finland, and SEAT and CUPRA imports in the Baltics. Kesko’s sports trade is also part of the division.

Our aim is strong sales and ebit improvement. The division’s growth strategy is based on a strong partnership with the world’s leading car manufacturer the Volkswagen Group and Porsche Group, more extensive utilisation of digitalisation, improved operational efficiency, and growing the sales of used cars and services. Our objective is to improve customer satisfaction and strengthen profitability and market position in all businesses.

Strategic objectives

• Strong sales and profit development
• Outperforming the market in all businesses
• Improving customer and employee experience
• #1 in brand awareness and preference

Competitive advantages

• A balanced business portfolio
• Strong position throughout the value chain
• Operational efficiency
• Speed of digital development
• Collaboration with the Volkswagen Group
• K Group strengths and synergies

Business environment

Economy

• Tentative signs of recovery in the market
• Continued weak consumer confidence and cautious purchase behaviour slowing down pace of recovery

New cars

• Registrations of new passenger cars down and at a very weak level; registrations of vans grew
• Big established brands maintained strong position in registrations despite new car brands entering the market

Used cars

• A significant market in Finland
• Market becoming more professional, share of C2C sales expected to decline

Powertrains

• The growth of electrification is clear
• Electrification a considerable challenge for traditional servicing operations
• K-Auto’s position in the EV transition very strong: brands represented by K-Auto account for 21.8% of EV sales in Finland

New operators

• Car trade operating models and roles in the distribution chain changing
• New car brands entering the market

Digitalisation

• Consumers increasingly adopting digital channels
• Digitalisation enabling better efficiency
• Multichannel sales growing, customer journey usually combines both digital and physical path

Read more in Kesko's Annual Report.