■ AVAG Holding ranks Germany's second-largest new car seller, following the Emil Frey Group!
■ Dealer Group AVAG led with 49,803 units, followed by Feser-Graf with 48,000 and Gottfried Schultz with 40,864. The Emil Frey Group does not disclose the sales of its national divisions to the Ifa-DAT analysis.
Source: kfz-betrieb
■ The market share of the big players in Germany is stagnating, but the return is growing!
The new car trading industry is experiencing significant changes, as highlighted in the 2024 Dealer Group Monitor from IfA and the DAT.
In 2023, the 100 largest dealerships maintained a market share of 29 percent of newly registered cars in Germany, slightly down from 29.1 percent in 2022. Despite this, overall sales for both the market and the top 100 dealerships rose by 7 percent.
The leading 100 trading groups sold 825,567 vehicles, with AVAG Holding at the top, selling 49,803 units. Notable rankings changes include Tiemeyer AG moving from 26th to 8th place and several new entrants due to mergers, such as Nowag and Kreuter Medele Schäfer.
Returns are also increasing. The top 100 companies achieved an average return of 2.5 percent, higher than the industry average of 1.7 percent. Although this is down from 3.1 percent in 2022, it's still the best performance in a decade.
■ ROI in German automotive retail
At the same time, the generally positive development of returns should not disguise the fact that the outlook is bleak for those companies that are already achieving below-average results. They will find it increasingly difficult to shape the changes in the new car trade, for example by adding new brands. Many car dealer groups are now very active in this field. They are trying to close the sales and earnings gaps that arise because the established brands are withdrawing from the small and compact car segment. In addition, there are the challenges of online marketing and agency sales.
■ The takeover process gains momentum
From the perspective of the makers of the dealer group monitor, it is evident that "large car dealership companies have so far managed the crisis phases relatively well in terms of business management and sales." However, the industry is currently facing a challenging period characterized by a high level of dynamism related to reorganization, restructuring, and takeover activities. These developments have the potential, in addition to the usual consolidation process, to significantly impact the automotive industry's structures in the future.
According to the dealer group monitor, the number of independent car dealerships is expected to decline. The IfA now estimates that of the approximately 5,300 dealerships still operating in Germany, only about 3,850 will remain independent in six years. Additionally, the number of establishments with a sales contract is projected to decrease from 10,200 to 8,900 by 2030. "We will continue to lose companies," asserts IfA director Stefan Reindl. Despite this, the IfA does not believe that brick-and-mortar retail is doomed. The effectiveness of stationary sales and sales concepts is still viewed as critical for success, particularly when the quality of customer interaction is high.
At the same time, it is evident that the consolidation of the industry is accelerating. This trend is being driven by foreign investors such as Van Mossel and Hedin, who are entering the German market, according to Reindl. Open questions also play a significant role in the future development of the industry, particularly concerning the agency model and online sales. The latter has been a topic of discussion for years, yet "no business model has truly taken off," notes DAT communications chief Martin Endlein.
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