Car trade strategy

K-Auto is a leading operator in Finnish car trade. The division’s operations comprise the import and sales of new cars, used car sales, extensive servicing, repairs and other services, and K-Lataus EV charging. As of spring 2023, the division has also housed sports trade. K-Auto has over 1.3 million customers, served by some 1,300 professionals. The brands imported and sold by K-Auto are Volkswagen, Audi, SEAT, CUPRA, Porsche and Bentley passenger cars and Volkswagen Commercial Vehicles in Finland, and SEAT and CUPRA in the Baltics.

Sports trade became part of the car trade division from 1 April 2023, while it previously was part of the building and technical trade division.

Strategic focus areas

• Major turnaround and continuous development establish a robust foundation for the next strategy period.  No need for major changes in strategy.
• A balanced business portfolio: new cars, used cars and services. Being present in the whole value chain maximises lifecycle profitability and reduces the impact of business-specific negative market cycles.
• Strong, organic profitable growth exceeding market growth in all three business areas. Potential M&As investigated as opportunities without being a must for realising the plan.
• Winning team drives K-Auto internally and externally to the next level. Best professionals want to work in winning teams and the best team provides an excellent customer experience.

Megatrends in operating environment

Macro economy

• After a rapid decline, the car market is recovering slowly
• First signs of recovery are now visible

Used cars

• A large growing market
• Trade between consumers has traditionally been significant
• The share of B2C in the total market is increasing and the market is becoming more professional

Fuel revolution

• Various powertrain options are now mainstream
• The direction of electrification is clear
• Our position and lineup in EV transition is strong

New players and roles

• Operating models and roles in the distribution chain are changing
• New brands are entering the market

Digitalisation

• Changes in consumer behavior continue
• Operations need to be more efficient
• Omnichannel sales increasing

Kesko organised an investor event on Tuesday, 4 June 2024. At the event, President and CEO Jorma Rauhala and other members of Kesko’s top management presented the company’s updated strategy and focus areas for the three business divisions. The event was held in English.Watch the recording and related materials here.

Read more in Kesko's Annual Report.