Car trade strategy

K-Auto is a leading operator in Finnish car trade. The division’s operations comprise the import and sales of new cars, used car sales, extensive servicing, repairs and other services, and K-Lataus EV charging. As of spring 2023, the division has also housed sports trade. K-Auto has over 1.3 million customers, served by some 1,300 professionals. The brands imported and sold by K-Auto are Volkswagen, Audi, SEAT, CUPRA, Porsche and Bentley passenger cars and Volkswagen Commercial Vehicles in Finland, and SEAT and CUPRA in the Baltics.

Sports trade became part of the car trade division from 1 April 2023, while it previously was part of the building and technical trade division.

Strategic focus areas

Our strategic objective is to be the leading operator in the car sector value chain in Finland.

Business environment 

• New distribution models bring significant reductions in total delivered cost

• Electrification continues, consumers uncertain about powertrain options

• Continued disruptions in supply chains

• Digitalisation increases efficiency, causes major changes in purchase behaviour

• New competition arriving in Europe

• Economic uncertainty impacting demand

Strategic objectives 

• The best customer experience in the business

• Digitalisation and a multichannel approach

• Commercial efficiency and profitable growth

• Growing used car sales

• Utilising synergies within the whole K Group

• Close collaboration with Volkswagen Group and Porsche Group

Year 2023

Net sales for the car trade division increased by 12.2.% in 2023, and totalled €1,262.3 million. The strong growth in net sales is proof of our good position in the car trade market. Net sales and operating profit grew in all three car trade business areas: new cars, used cars, and services. Our improved profitability in car trade is at a very good level also when compared to international peers. 

The car trade market is changing rapidly. To ensure success also going forward, our focus will be – in line with our strategy – on improving customer experiences, strengthening profitability, utilising digitalisation, and ensuring sustainability, while utilising synergies as part of ‘One unified K’. In particular, accelerating the multichannel sales of used cars and car-related services, and our close collaboration with Volkswagen Group and Porsche, will act as cornerstones for growth.

All K-Auto business areas in profit

General economic uncertainty had an impact on consumer purchase behaviour in 2023 also in car trade. First registrations of new cars increased by some 6.2% in Finland. K-Auto’s share of first registrations of new cars (passenger cars and vans) was 15.1%. New car deliveries grew considerably on 2022, as availability improved. The order book for new cars stayed at a good level, but demand and orders were clearly below normal levels. Consumer interest towards electric vehicles decreased slightly due to high inflation and uncertainties related to electricity prices, but relative to other powertrain options, their demand grew. We strongly believe that demand will grow in upcoming years. Our strong brands and interesting new models will continue to support sales growth going forward. New car sales accounted for some 54% of K-Auto’s net sales.

K-Auto’s used car sales grew significantly, and our market share grew. Profitability also improved thanks to sales growth and more efficient operations. K-Auto’s used car purchases are made by its own purchasing unit that operates internationally. Our market share in used cars grew significantly during the year. The market in Finland is still fragmented. Used car sales accounted for some 27% of K-Auto’s net sales.

The service business comprises servicing, damage repairs, spare parts, and K-Lataus. In 2023, service sales grew and profitability was at a good level. Profitability improved thanks to higher servicing volumes and better productivity. During the year, we launched an online store for tyres, which together with physical stores supports customer satisfaction and brings additional sales. In our K-Lataus EV charging network, sales grew strongly, and the amount of sold electricity doubled. The charging stations at K Group store locations create synergies. Services accounted for some 19% of K-Auto’s net sales. Our leasing fleet comprises some 4,900 cars. 

Our strategic goal is to grow in all car trade business areas – new cars, used cars, and services. We believe that as the market normalises, all our businesses have plenty of growth potential and possibilities for new operating models. Our strong position in all stages of the value chain is a competitive advantage.

Sports trade

Kesko’s sports trade has been part of the car trade division as of 1 April 2023, having previously been reported under building and technical trade. Sales of Intersport and Budget Sport decreased by 14.1.% as consumer demand weakened, but proftablity remained at a good level. Kesko is the market leader in Finnish sports trade. 

Read more in Kesko's Annual Report.