Positive trends continued in the second quarter at AutoWallis Group, leading to an almost four-fold increase in the listed vehicle company’s vehicle sales. Growth was mainly driven by the five transactions closed last year, though organic expansion was also significant. Sales data clearly show that the company has overcome most of the disadvantageous effects of the COVID-19 epidemic, with even the number of rental days increasing to more than twice that of the base period.
Thanks to the easing of the restrictive measures put in place due to the COVID-19 epidemic and to AutoWallis’s successful sales strategy, the company experienced a significant improvement on the rental car market in the second quarter. Within the company’s Retail & Services Business Unit, the number of rental days increased significantly, by more than two-fold (+101.5%) to 66,183 in the area of vehicle rentals, and the number of rental events stagnated (+1%). This means that the crisis measures introduced on the rental vehicle market, which was heavily hit by the COVID-19 epidemic, and the restructuring of the company’s sales strategy were both successful: in absence of travel for tourism, the company transitioned to longer term rentals, and the available fleet grew slightly, by 9 percent. The advantageous trend also extended to service hours: as a result of the five transactions closed last year and the company’s organic growth, hours increased by two and a half times (+163.6%) to 62,666 hours, with organic growth in itself equal to 67 percent. The favorable trend was also felt in the vehicle sales of the company listed in the Premium Category of the Budapest Stock Exchange: without factoring in the effects of last year’s transactions, new vehicle sales doubled (+100.4%); if last year’s transactions are also included (Iniciál Autóház, Wallis Kerepesi, domestic sales of Jaguar and Land Rover, as well as the BMW dealership in Ljubljana), growth was almost four-fold (+247.3%), reaching a total of 3,428 vehicles (in comparison, the Hungarian passenger vehicle market grew by a total of 16 percent*). Used vehicle sales also produced good numbers: together with last year’s transactions, the number of vehicles sold increased by 141 percent, equal to 842 vehicles (even without the transactions, the growth is equal to 2 percent). AutoWallis Group’s Distribution Business Unit performed even better, primarily due to the launch of Opel sales in four countries at the beginning of the year. New vehicle sales in the Business Unit increased by more than four times (+309.4%) to 7,385 vehicles (with organic growth equal to 32.2 percent).
According to the CEO of AutoWallis Gábor Ormosy, the sales numbers of the first half show that together, the number of transactions last year and the already stable foundations significantly increase the company’s size and its ability to produce profit, and they also contribute to helping make the company a major vehicle trading company and mobility service provider in the Central and Eastern European region by the end of the decade. He emphasized that based on the data of the first six months, growth was experienced in the area of vehicle rental services as well, and the short-term rental market is also expected to pick up pace as the borders are reopened. In connection with new vehicle sales, he said that after the exceptional performance of the first half, the global chip shortage and the resulting manufacturing difficulties are having a negative effect on the entire market, which may culminate in the third quarter.
* Market data by DataHouse.