Car trade strategy

The car trade division’s strategic objective is to grow its business in collaboration with the Volkswagen Group and strengthen its market position in retail by expanding its operating area in Finland.

In 2018, K-Auto’s market share in Finland was 18.5% (passenger cars and vans) and in trucks 4.1% (over 6 t). Volkswagen and SEAT both increased their market share and Porsche made a new sales record. Volkswagen Commercial Vehicles were the most registered brand of vans in Finland. In addition to traditional car sales and servicing operations, we strengthened our own service business and multichannel customer service. Growth in the user numbers of online service booking and chat supports the strong development of our digital services.

Of the brands represented by K-Auto, new models introduced to the market in 2018 included the

  • Volkswagen Tiguan Allspace and Touareg
  • Audi A7 Sportback, A6 Sedan and Avant, Q8 and A1
  • SEAT Tarraco and CUPRA Ateca
  • Porsche Cayenne E-Hybrid, Macan and 911 GT3 RS, and Panamera 4 E-Hybrid and Sport Turismo Advantage Package Finnish editions
  • MAN TGE van.

 
K-Auto launched a new online service leasing service for corporate customers, K-CaaraLeasing, which offers extensive service leasing services to companies of all sizes. K-Caara’s service selection grew with the K-CaaraVaihtoautot service, which combines the used car selections of Volkswagen, Audi and SEAT Centers. Customers can buy the cars online or at the stores.

K Group launched K Charge, a nationwide network of electric car charging stations, to be built in 2018 and 2019. It enables people to charge their car during a shopping trip. The K Charge network will increase the number of public fast charging points in Finland by over 50%, making K Group one of the most significant electric car charging network operators in Finland. By the end of 2019, the network will comprise over 70 charging stations with nearly 400 charging points.

We also piloted new cross-divisional mobility services. In spring 2018, K-food stores and K-Rauta stores in Finland began piloting rental car sharing for passenger cars and vans, thus utilising K Group's store network and customer flows and helping to establish how attractive local stores would be as pick-up points for car sharing.

Megatrends and strategic focus areas

Megatrends affecting car trade

  • Customer data
  • Hybrid cars
  • All-electric cars
  • Connectivity and digitalisation
  • Autonomous cars
  • Mobility services

 

STRATEGIC OBJECTIVE

WHAT WE ARE DOING

Growing our business in collaboration with the Volkswagen Group

 

  • Strengthening the position of Volkswagen passenger and commercial vehicles, Audi, SEAT, MAN and Porsche in Finland
  • Successfully integrating the Porsche business into K-Auto
  • Further developing the MAN network
  • Growing the range of all-electric cars and rechargeable hybrids

Expanding our own service business

  • Launching the K Charge network
  • Developing new mobility services under the K-Caara brand
  • Offering leasing services to private and corporate customers

The best customer experience in all channels 

  • Utilising K Group’s customer data
  • Continuous improvement of digital services

In 2018, there were 120,499 first registrations of passenger cars, 15 515 first registrations of vans and 3,897 first registrations of trucks in Finland. The passenger car market increased by 1.6% compared to the year before, while the market for vans declined by -0.1% and the market for trucks grew by 12.2%.

The total number of registrations of vehicles imported by K Auto was 24,932 (excluding motorhomes). The number of MAN trucks registered was 130.

MARKET SHARES

Car trade, Finland

  • K Auto’s market share 18.5% (Volkswagen, Audi, SEAT and Porsche passenger cars and Volkswagen Commercial Vehicles combined, excluding motorhomes)
  • Volkswagen passenger cars 11.2%
  • Audi 4.1%
  • SEAT 2.2%
  • Porsche 0.3%
  • Volkswagen Commercial Vehicles 24.3%
  • MAN trucks 4.1% (over 6t)
  Lukumäärä Sales (pro forma) (VAT 0%),
€ million
Retail sales and number of stores 2018 2017 2018 Change, %
K-Caara 13 13 428 -2.5
K-Auto, import  -  - 423 -3.5
AutoCarrera 3 3 62 13.9
Car trade, total 16 16 913 -2.0
 
Key figures 2018 2017
Net sales, € million   893 909
Operating profit, comparable, € million     34.5 33.1
Operating margin, comparable   3.9 3.6
Return on capital employed, comparable, %, rolling 12 months   21.2 21.5
Capital expenditure, € million   49.0 17.4
Personnel, average   835 809
 
Properties 2018 2017
Owned properties, capital, € million   50 53
Owned properties, area, 1,000 m²   47 47
Leased properties, lease liabilities, € million    6 9
Leased properties, area, 1,000 m²   26 26
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