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Two new directions for the AutoWallis Group: The targets are Austria and online sales

2022-09-21

The AutoWallis Group has set its sights on online sales and Western Europe, providing the foundation for both with a significant acquisition and business development in both areas. The automotive company registered on the Hungarian stock exchange may acquire Net Mobilitás Zrt., which operates the JóAutók.hu and Autó-Licit.hu websites, and is entering the Austrian market with as importer for SsangYong vehicles. These announcements are in line with AutoWallis’s strategy announced last year, the aim of which remains to more than double 2021 revenue to over HUF 400 billion by 2025.

After announcing the purchase of Renault Hungária, the AutoWallis Group has decided to continue acquisitions and business developments: both announcements are milestones in the implementation of the corporate strategy made public last year, as obtaining import rights for SsangYong in Austria can be an important milestone on the route to further diversification, and the acquisition of Net Mobilitás Zrt., the operator of the JóAutók.hu and Autó-Licit.hu websites, is one of the first steps in opening towards online sales solutions. AutoWallis Group CEO Gábor Ormosy said that both transactions can be considered quite significant in this changing and turbulent economic environment, where AutoWallis plans to continue its progress at the same dynamic pace, relying on the strength of its capital, more than 30 years of experience, and crisis-proof strategy. He reminded us that the Group announced its new strategy last year, which expects the company listed in the Premium category of the Budapest Stock Exchange to enjoy explosive growth by 2025. The Group’s revenue for last year could more than double to over HUF 400 billion, while its EBITDA could rise to over HUF 14 billion. The planned growth is based on the transactions performed and those announced by the company, organic growth, and additional planned acquisitions. Through this strategy, AutoWallis expects to become a major vehicle trading company and mobility service provider in the Central and Eastern European region by the end of the decade. As already known, in August the company reported a record quarter, generating more earnings per share in the first six months of the year than in the whole of last year. Referring to the increase in results that have thus far exceeded plans, the CEO did not exclude the possibility of upwardly revising the business plans; however, due to the continuous and significant changes in the macroeconomic circumstances, the company considers it prudent to maintain them at current levels. The recently announced transactions support the meeting of the set goals while management continues to work on future developments and acquisitions.

AutoWallis Group becomes SsangYong importer in a fifth country, Austria By acquiring the import rights for SsangYong vehicles in Austria, the AutoWallis Group is expanding its wholesale activities to yet another country. As a result, the automotive company registered on the Hungarian stock exchange will be present in 15 countries, further strengthening its already major position on the Central and Eastern European market in a developed market as part of what is, its first foray into Western Europe. Starting from the beginning of 2023, the company will now represent the South Korean brand as exclusive importer in four neighbouring countries besides Hungary, while also enjoying dynamic growth in the domestic market. The Group has represented the increasingly popular vehicle brand since 2012:  first in Hungary, then adding Romania, the Czech Republic and Slovakia to its area of responsibility. Besides its wholesale activities, the Group entered the Hungarian retail market for SsangYong in spring 2022 opening its first own dealership in Budapest. Andrew Prest, head of AutoWallis’s Distribution Business Unit, explained that the step perfectly complements the strategy, which is aimed at continuing the Group’s organic growth in addition to its acquisitions, making the brands already represented available in an increasing number of countries. He emphasized that   this latest business development enables the company to test the waters, with minimal risk, to the west of its strategic Central Eastern European region via an already successful import brand they believe has excellent potential for further growth, given its good price-value ratio in an expanding market segment. This increase in revenue allows AutoWallis’s recognition and position and the synergies between the members of the Group to help improve their operational efficacy and increase share value. The head of Distribution said that they expect to see up to five-digit SsangYong sales in the region next year, which will now include 5 countries with the addition of Austria.

With the acquisition of JóAutók.hu, AutoWallis is entering the online automotive sales market

By acquiring Net Mobilitás Zrt., the operator of the JóAutók.hu and Autó-Licit.hu websites, AutoWallis Group is taking its first step in the online automotive sales market. The sites collect verified used car advertisements from certified sellers and are major players on the Hungarian market. Launched in 2017, the JóAutók.hu site for certified dealers and verified used cars has since become the second largest player. Although it also supports traditional used, new, and dealership sales, where sellers are usually dealers, the site is also open to postings from private individuals. Founded in 2006, the Autó-Licit.hu car auction site is used by contracted fleet operators (multinational companies, banks, leasing companies, state-owned enterprises, fleet operators, car rental companies, and such) and, to a smaller extent, private individuals, to offer their cars for sale. Employees of registered domestic and foreign dealers and contracted fleet operators can participate in buying. Gábor Ormosy explained that the step aims to support current development projects, utilizing the synergies available within the Group. Another important aspect was that this also provides a response to a need for a changing distribution model where online sales channels play an increasingly substantial role. AutoWallis will acquire the operator of the two sites, Net Mobilitás Zrt., from WAM Immobilia Ingatlanhasznosító és Üzemeltető Zrt. by way of an exchange of shares. The transaction is expected to be closed by the end of the year.

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Two new directions for the AutoWallis Group: The targets are Austria and online sales