Digital remarketing: A look at the Portuguese automotive market
The Portuguese automotive market suffered badly during the recession, with a significant reduction in new car sales in 2012 when only 100,000 new passenger cars and 20,000 light commercial vehicles were sold.
Four years on, Portugal’s new car sector is booming, with 137,751 cars sold in the first half of 2016, an 18% increase over the same period in 2015, while total new car sales are forecast to reach between 230,000 and 240,000 by the end of 2016, and again in 2017.
This is representative of Portugal’s rapidly growing economy, with the Association of Specialised Credit Institutions (ASFAC) reporting a 40% increase in granted credit for the purchase of vehicles in May 2016, compared to May 2015.
It also demonstrates the growth of the Portuguese tourism industry with a corresponding increase in the number of vehicles purchased by rental companies. Such is the growth in this sector, that passenger rental vehicles accounted for a fifth of all new cars sold in the first six months of 2016.
At the heart of the growing used car market is Autorola’s online auction platform, which is helping to further digitise stakeholders in the Portuguese automotive market, providing national and continental-wide access to used vehicles through the pan-European auction portal.
Thanks to a closed market because of high taxation, consumer demand is heavily outstripping supply for used vehicles, causing prices to rise. According to Miguel Vassalo, Autorola Portugal’s country manager: “Demand for used cars is forcing buyers to look towards other nations in continental Europe, such as Germany, France and Belgium, for importing vehicles.
“We expect used car imports to equate to 55,000 by the end of 2016, with vehicles such as the Renault Megane, Peugeot 508 and BMW 1 Series all proving popular with buyers in the C and D segments.”
As a result of the current digital transformation in the automotive industry, many OEMs and dealers are being heavily influenced by Autorola introducing the INDICATA business intelligence platform in 2015, which Vassalo describes as a, “game changer for the Portuguese automotive industry.
“Introducing INDICATA has been the main catalyst for growth in multiple companies; by analysing live used market data, it provides valuable insight on demand, supply and pricing in the market for OEMs and dealers.
“This can also be assessed at a local level, enabling dealers to not only ensure their vehicles are priced correctly, but to help them decide which cars to stock through analysing the dynamics of local demand and supply,” he added.
Streamlining the whole remarketing process for fleet owners is Autorola’s Fleet Monitor that manages the storage, logistics, appraisal and damage calculation, which allows all processes to be managed by a single system and provider.
“With more models becoming available in the coming years in Portugal, independent and franchised dealers will be able to continue using the Autorola remarketing portal to fill their forecourts with the exact used stock they require,” said Vassalo.