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Even though the market for car trade in Finland remains very challenging, Kesko’s car trade division has continued to produce excellent results in 2025. Johanna Ali has headed the division for some 18 months. She wants to change the image for car trade and offer a better customer experience: ”I  feel that customers are entitled to a much higher level of service in car trade than we in Finland are used to.”

The difficult market and ongoing major sector disruption have an impact also on Kesko’s car trade, says division President Johanna Ali: ”Obviously, weakened consumer confidence, uncertainty regarding the future and cautious consumer behaviour pose considerable challenges for our sector. Those challenges are not limited to new car sales – serious changes will also be needed in the service business.”

The Finnish market for car trade is typically measured by first registrations of passenger cars, which in 2024 totalled a bit over 70,000. Meanwhile, the market for used cars amounted to over 600,000 units, over half of which were sold by one consumer to another.

The number of new cars sold in Finland each year should total over 100,000 to ensure that the average age of vehicles on our roads does not rise too high. However, as Ali notes: ”The market for new cars has been historically low for the past few years, and this year it will barely reach the levels seen in 2024.”

K-Auto has responded to the challenges by strengthening its position in used car trade where volumes are steadier. The trusted K Group brand has been a big help in expanding used car operations.

Meanwhile, the service business poses bigger challenges in the long term: ”Inevitably, some of our current business is disappearing, with new car sales lagging behind average for so long, and electric cars – which do not need as frequent servicing or oil changes – becoming more common. This means we must find new business opportunities,” explains Ali.

K-Auto’s businesses also include the K-Lataus EV charging network, and the increasingly popular car leasing services, where Ali sees huge potential for development, while also acknowledging the competition.

K-Auto’s position constantly growing stronger

Typically, market shares in car trade are examined by car brands and models. Ali, however, can also present figures for K-Auto as an operator: “In new car sales, K-Auto’s market share hovered around 14% for a long time, but it has now risen above 17%. In used car sales, we have quickly risen to the TOP 5 and massively gained market share. We have also won over market share in car leasing, also for used cars.”

”I’m extremely proud of what our people have been able to achieve in a market that lends us absolutely no support. In Q3, K-Auto grew by nearly 20% in new passenger cars and commercial vehicles, versus the overall market growth of 2%. Meanwhile, in used cars, the market was flat year-on-year, yet we managed a growth of over 20%.”

Success is built on effective strategy, good product portfolio and the best people in the business

So what is the excellent performance in Kesko’s car trade based on? According to division President Ali, the key is an effective strategy made into a reality.

”For five years now, we have been pushing through an extensive transformation programme, in which we have made changes to organisational structures, updated our operating principles, and accelerated digitalisation. We have taken operational excellence to a totally new level, and that is now bearing fruit.”

Ali also acknowledges the importance of the products, strong brands, and a portfolio that covers a wide range of price points. “We are also the only operator in Europe that has such an extensive presence in all parts of the car trade value chain,” she notes.

Last but not least are the best professionals in the business. Under Johanna Ali, employee experience has become one of the strategic focus areas for Kesko’s car trade. ”In essence, car trade is a very human-focused business. In both sales and services, we employ a variety of amazing professionals, who make sure they are constantly up to date on latest technology. It is obvious that motivated people with a positive mindset do better work, and eventually, that also impacts our bottom line”, says Ali.

According to Johanna Ali, K-Auto has become more deeply integrated into Kesko and K Group in recent years: ”It is great, as it enables us to constantly learn from each other: in car trade, we can learn from the way retailers respond to local needs with their store-specific business ideas. Meanwhile, we can teach the rest of the Group the type of agility that is typical and crucial for a smaller business division.”

TEXT: Kirsi Suurnäkki-Vuorinen

Summary of an interview first published in the Kehittyvä kauppa magazine published by K-Retailers’ Association on 20 November 2025

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