Car trade strategy

The strategic objective for the car trade division is to outgrow the market and improve profitability. The coronavirus epidemic began to affect our operations significantly from mid-March 2020 onwards. Demand for the car trade has declined significantly and new car sales and orders are clearly below normal levels.

We continue the determined execution of our growth strategy, but for now our focus is on managing the crisis brought on by the coronavirus epidemic. Information on the impacts of the epidemic on Kesko’s businesses can be found under the Operating environment section.

 

Our strategic objectives: 

STRATEGIC OBJECTIVE

WHAT WE ARE DOING

Growing our business in collaboration with the Volkswagen Group

 

  • Strengthening the market position of Volkswagen passenger and commercial vehicles, Audi, SEAT, CUPRA, Porsche, Bentley and MAN in Finland
  • Growing the range of all-electric cars, rechargeable hybrids, mild hybrids and gas cars
  • Growing and developing our own dealer network

Expanding our own service business

  • Further developing our private and corporate leasing services
  • Expanding the K Charge network
  • Introducing new mobility services to our service selection

The best customer experience in all channels 

  • Utilising K Group’s customer data
  • Developing digital services and increasing offering

Business environment

  • Utilisation of customer data
  • Hybrid cars
  • All-electric cars
  • Connectivity and digitalisation
  • Mobility services

 

Comparable figures

 

The car trade strategy review can be read in Kesko's 2019 Annual Report

In 2019, there were 114,199 first registrations of passenger cars, 14,702 first registrations of vans and 4,020 first registrations of trucks in Finland. The passenger car market declined by 5.2% and the market for vans declined by 5.2% compared to the year before, while the market for trucks grew by 3.1%. The total number of first registrations of passenger cars and vans imported by K-Auto was 21,505 (excluding motorhomes). The number of MAN trucks registered was 100.

MARKET SHARES

Car trade, Finland

  • K-Auto's market share 16.9% (Volkswagen, Audi, SEAT, CUPRA, Porsche and Bentley passenger cars and Volkswagen vans combined, excluding motorhomes)
  • Volkswagen passenger cars 10.5%
  • Audi 3.2%
  • SEAT 2.2%
  • Porsche 0.2%
  • Volkswagen vans 23.0%
  • MAN trucks 3.1% (over 6t)
  Number of stores Sales (pro forma) (VAT 0%),
€ million
Retail sales and number of stores 2019   2019 Change, %
K-Caara 42   616.0 -18.2
K-Auto, import  -    268.0 8.3
AutoCarrera 3   48.0 -23.1
Car trade, total 45   932.0 -12.3
 
Key figures Rolling
12 mts
6/2020
2019 2018
Net sales, € million 866.0 863.9 893.1
Operating profit, comparable, € million   23.9 26.8 35.2
Operating margin, comparable 2.8 3.1 3.9
Return on capital employed, comparable, %, rolling 12 months 6.6 9.5 20.8
Capital expenditure, € million 115.7 131.3 49.0
Personnel, average - 1,179 835
 
Properties   2019 2018
Owned properties, capital, € million   53 50
Owned properties, area, 1,000 m²   47 47
Leased properties, lease liabilities, € million    72 6
Leased properties, area, 1,000 m²   98 26
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