We integrate Ukraine into the European car market — AUTO1 Group

Every month, Ukrainians bring about 15,000 used cars from abroad, about 75% of which come from the countries of the European Union. Ukrainians buy a significant part of them at online auctions. One of the most famous among the Ukrainian auto business is the AUTO1.com platform . The Auto Market Research Institute spoke with Piotr Baranovich, Vice President of Central and Eastern Europe at AUTO1 Group.

— What is AUTO1 Group and what is its main goal?

AUTO1 Group is a powerful European multi-brand company and a leader in the online auction market. This is a German startup: we are building the future of buying and selling cars in the heart of Europe. Simply put, we buy and sell used cars in large quantities and in a variety of ways. We have the strongest position on the market, because we cover all directions: C2B, B2C, B2B segments, that is, we sell cars both wholesale and retail. In addition, we are revolutionizing the market with technology, data and ambition.

The first brand in our portfolio was wirkaufendeinauto.de (German for "we will buy your car"). Thanks to him, we became the leader in the purchase of cars with mileage from private individuals in Europe. Every week we buy thousands of cars, which are delivered to more than 400 collection points throughout Europe. We offer these used cars for sale on our other platforms.

AUTO1.com, already known to Ukrainians, is Europeʼs largest wholesale B2B platform for the sale of used cars. Importantly, only those who are professionally engaged in the car trade get access to it. We provide online tools for easy, safe and fast buying and delivery of used cars across Europe. For example, you can buy used cars from Germany, Belgium or the Netherlands and deliver them to Poland, to the border with Ukraine, quickly and at a very favorable price.

Our other brand, Autohero, the leading European online used car retailer for private individuals, is currently growing rapidly in the European market thanks to its large selection of cars and high quality service. Users can choose a verified car online there, and we will take care of all the formalities and deliver it to the door. And all this without leaving your home or office. In total, in 2022, AUTO1 Group sold almost 650,000 cars throughout Europe. Our global goal is to create the best and most transparent way to buy and sell cars online.

- How long has the company been operating? In which countries does it have representative offices?

AUTO1 Group was founded in 2012 and is headquartered in Berlin, Germany. We employ around 6,000 people across Europe, and our revenue in fiscal year 2022 was €6.5 billion.

AUTO1.com, our platform for B2B customers, was founded a year later — in 2013. Since then, we have been actively developing a network of representative offices in various countries. Today we are present in more than 30 European countries. In addition to EU member states, we also work in the Balkans and Ukraine.

— What is special about the AUTO1.com platform? What are the advantages of an auction compared to buying on a marketplace or car market?

First of all, AUTO1.com offers its customers a really wide selection of cars — from the cheapest to the very expensive. We have an extremely wide selection of cars. In total, more than 30,000 cars of various prices and years of manufacture are currently on auction, and many of them are eligible for VAT refunds, which allows the car business to earn more. In general, the companyʼs strategy makes it possible to buy cars not only from the warehouse, but also from dealers engaged in remarketing. A detailed description, a set of photos and videos of the engine, a report on the technical condition, an understanding of the exact cost of the car and its delivery provides confidence in the purchase.

In addition, when buying a vehicle on AUTO1.com, you get guarantees: your car will be delivered to the border with Ukraine, everything will be in order with the documents, your money will not disappear and you will not encounter a fraudster.

— Why is the AUTO1.com platform designed only for the business segment of the car market and not for private customers?

The primary purpose of AUTO1.com is wholesale, so we are primarily targeting those who trade cars on a regular basis. We want to cooperate on a permanent basis, strengthening our business relations every day. We have special apps for evaluating, buying and selling cars. With the help of these and other tools, our partners can develop their own business, save time and money on organizing business processes.

This approach, where all efforts are focused on the development of tools for the automotive business, has allowed us to become Europeʼs largest wholesale platform for professionals in the automotive market. In several countries where we operate, we also have brands for private customers: the already mentioned WKDA (wirkaufendeinauto.de) and Autohero. Thus, using the full potential of AUTO1 Group — technology, scale and operational excellence — our customers get the best online car buying experience.

— How many cars does AUTO1.com sell each year?

We are developing intensively from year to year, establishing cooperation with an increasing number of dealers. Currently, we cooperate with more than 60,000 partners. In 2022, we managed to sell more than 580 thousand cars through AUTO1.com.

— Is AUTO1.com planning to start work in Ukraine?

In fact, Ukrainians have been able to use the AUTO1.com platform for several years. We provide access to the service to representatives of the Ukrainian auto business and open the opportunity to buy cars.

However, if we talk about the whole process, including the delivery of the car directly to Ukraine, then this is still impossible. After buying a car on AUTO1.com, Ukrainian partners can order delivery to the Polish-Ukrainian border. In addition, we recommend our partners to use the services of a customs agency that cooperates with us, prepares export documents and has the exclusive right to do so in Poland.

During our work with Ukrainian clients, we have helped many local auto businessmen. We are proud of cooperation with Ukrainians who have their own companies in Ukraine or Europe and who have bought, are buying and will continue to buy cars from us.

— The Ukrainian car market actively developed from 2016 to 2022, when more than 2 million used cars were brought from abroad. With the beginning of a full-scale war in Ukraine, the volume of imports decreased, increased sharply after the temporary cancellation of customs payments, and after their return collapsed again. Today, on average, 15,000 used cars are brought to Ukraine every month, of which only 10,000 are from the EU countries. Is the Ukrainian car market still interesting for AUTO1 Group?

Ukraine is a specific, but very large and interesting market for us. We keep an eye on local market intelligence — particularly through the work of the Auto Market Research Institute — and admire how the industry is coping in the tough times of war. We are happy to help our Ukrainian partners and offer them a large selection of cars and established processes. This makes their business much easier in this difficult time: you can buy products and earn money from them without leaving your home.

— What are the requirements for starting work with AUTO1.com?

In order to start working with AUTO1.com, you need to confirm your status as an entrepreneur. It can be both an extract from the registration of an enterprise (PE or LLC) and an individual entrepreneur (FOP). The main condition is to have a registered "automotive" type of economic activity (KVED). For example, 45.11 — trade in cars.

Immediately after registration, the dealer can participate in online auctions 24 hours a day, 7 days a week and choose from 30 thousand used cars available on our website. There is no monthly fee for using the platform.

— How does AUTO1 Group see the automotive market of Europe and Ukraine in 5 years?

Entering the Ukrainian market, we integrate it into the European one, so that Ukrainians can become full-fledged players on it. We are glad to see Ukraine in our pan-European trade system and hope for continuous improvement of cross-border business relations. As for sales volumes, it is difficult to predict anything here. However, we do our best to make it quick and easy to buy and sell a used car online.

Thank you for the conversation and I invite you to visit Ukraine!