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.
Our strategic objective is to be the leading operator in the car sector value chain in Finland.
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
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
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.
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.
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.
In 2023, there were 87,508 first registrations of passenger cars and 11,023 of vans in Finland. The passenger car market grew by 7.1% compared to the year before, while the market for vans decreased by 1.5%.
In 2023, slightly over one-third (33.8%) of first-registrations of passenger cars in Finland were fully electric cars, and slightly over one-fifth (20.7%) rechargable hybrids.
The total number of first registrations of passenger cars and vans imported by K-Auto was 14,677 (excluding motorhomes).
K-Auto’s market share of first registrations in Finland was 15.1% (Volkswagen, Audi, SEAT, CUPRA, Porsche and Bentley passenger cars and Volkswagen commercial vehicles, excluding motorhomes).
Registration data source: Netwheeels/Traficom
The Finnish sports trade market in 2023 totalled some €1.3 billion (-3.8%) (Fashion and Sports Commerce association). Kesko’s sports trade (Intersport and Budget Sport) held a market share of some 24%.
Competitors: XXL, Stadium, hypermarkets, and online stores.
Number of stores |
Sales (pro forma)(VAT 0%), € million |
||
Retail sales and number of stores |
2023 |
2023 |
Change, % |
Car trade |
49 |
1,085.2 |
18.1 |
Sports trade |
62 |
261.3 |
-4.9 |
Car trade division, total |
111 |
1,346.4 |
12.8 |
On 31 December 2023, Intersport had 52 and Budget Sport had 10 stores in Finland. |
|||
Key figures |
2023 |
2022 |
|
Net sales, € million |
1,262.3 |
1,124.8 |
|
Car trade |
1,078.6 |
910.9 |
|
Sports trade |
183.9 |
214.0 |
|
Operating profit, comparable, € million |
82.6 |
64.3 |
|
Car trade |
73.1 |
48.4 |
|
Sports trade |
9.5 |
16.0 |
|
Operating margin, comparable, % |
6.5 |
5.7 |
|
Car trade |
6.8 |
5.3 |
|
Sports trade |
5.1 |
7.5 |
|
Return on capital employed, comparable, % |
15.8 |
14.7 |
|
Capital expenditure, € million |
80.3 |
45.1 |
|
Personnel, average |
1,531 |
1,519 |
|
Properties |
2023 |
2022 |
|
Owned properties, capital, € million |
42 |
44 |
|
Owned properties, area, 1,000 m² |
53 |
50 |
|
Leased properties, area, 1,000 m² |
163 |
96 |