Two formidable names in the automotive industry have come together to launch a new joint-venture – Autorola Middle East & North Africa (MENA) Holding Limited – with the mission to reinvent the region’s B2B used-car market. This joint-venture will introduce an integrated and end-to-end digital platform for the industry, which will digitise and simplify every step of the remarketing process, with consistent, transparent pricing, seamless, automated workflows, and auctions taking place 24/7. This will allow better trade-in ratios, stock that moves faster, and an improved better customer experience.
The pre-owned automobile industry in the UAE, one of the most important in the world, is now valued at US$ 14 billion and is forecast to rise quickly to US$ 20.5 billion by 2025 with an anticipated CAGR of 10-12%. However, the current state of the used-car market is faced with many legacy challenges and pain-points experienced by regional automotive companies, such as: Limited by manual processes and excel-based workflows, inconsistent pricing, in-person auctions that take place once a week, no vehicle inspection, decentralized remarketing processes and siloed decision-making. The new joint-venture’s digital platform will address these key pain points for all automotive companies and used-car traders within the region.
With Autorola MENA, the digital platform is customisable and customer-focused, with modules for fleet monitoring, running fleet, ordering and repairs, booking, appraisals, and every step of the remarketing process, including transfer, storage, insurance, cleaning and inspection, pricing, a digital showroom, auction selection and management, and payment. It also offers document sharing and collaboration tools, as well as an integrated “Fleet Chat” platform, making emails, SMS messages and phone calls with vendors and other partners unnecessary.
Autorola MENA is the result of a collaboration between Autorola A/S and Al-Futtaim Automotive. Autorola A/S is a global leader in online vehicle remarketing and automotive IT solutions, operating in 19 countries. The global platform had more than 55,000 active dealers and 815,000 cars auctioned in 2021, with existing clients that include banks, rental dealers, leasing dealers, and others.
Al-Futtaim Automotive, which provides some of the world’s most-recognised automotive brands, services, and mobility solutions to customers across the region, sees immense potential in the digital transformation of the used-car market in the Middle East. As the leading automotive group, Al-Futtaim Automotive aims to bring its regional scale and expertise into the new venture, with the hope that many other leading automotive companies will join in and enable the UAE’s digitalisation efforts towards creating a more organised, progressive and world-class business ecosystem, especially within the context of the used-car market which currently seems very unorganised.
“This collaboration is both strategic and synergistic,” said Peter Grøftehauge, CEO of Autorola A/S. “As one of the world’s most recognised and widely respected automotive brands and the go-to market partner for expansion in the Middle East, Al-Futtaim Automotive brings credibility, knowledge of the local market and regulations, as well as the proof of concept and operations. We bring the end-to-end digital solution, the technological expertise, the wider pool of buyers with higher bid volumes, convenience for sellers, and transparency and traceability. Together, we’re tapping into a whole new business ecosystem.”
Paul Willis, President of Al-Futtaim Automotive, commented: “This venture is a vital component of our growth strategy, and a historic first for our company to enter into the software business. Autorola is a leader in this field and their complete end-to-end digital solutions allows us to serve a wider B2B customer base through a modern and digitised customer journey. Using Al-Futtaim as a test-bed in the region, this independent and impartial new tech company will change the face of vehicle remarketing in the UAE and the wider region for all prospects.”
Autorola MENA is slated to start in the UAE and expand quickly to other countries in the region. The platform is built to cater to all car brands and corporations, right from the inception, with all client data being kept secured and protected on AWS servers and treated as highly confidential.
The pre-owned automobile industry in the UAE, one of the most important in the world, is now valued at US$ 14 billion and is forecast to rise quickly to US$ 20.5 billion by 2025 with an anticipated CAGR of 10-12%. However, the current state of the used-car market is faced with many legacy challenges and pain-points experienced by regional automotive companies, such as: Limited by manual processes and excel-based workflows, inconsistent pricing, in-person auctions that take place once a week, no vehicle inspection, decentralized remarketing processes and siloed decision-making. The new joint-venture’s digital platform will address these key pain points for all automotive companies and used-car traders within the region.
With Autorola MENA, the digital platform is customisable and customer-focused, with modules for fleet monitoring, running fleet, ordering and repairs, booking, appraisals, and every step of the remarketing process, including transfer, storage, insurance, cleaning and inspection, pricing, a digital showroom, auction selection and management, and payment. It also offers document sharing and collaboration tools, as well as an integrated “Fleet Chat” platform, making emails, SMS messages and phone calls with vendors and other partners unnecessary.
Autorola MENA is the result of a collaboration between Autorola A/S and Al-Futtaim Automotive. Autorola A/S is a global leader in online vehicle remarketing and automotive IT solutions, operating in 19 countries. The global platform had more than 55,000 active dealers and 815,000 cars auctioned in 2021, with existing clients that include banks, rental dealers, leasing dealers, and others.
Al-Futtaim Automotive, which provides some of the world’s most-recognised automotive brands, services, and mobility solutions to customers across the region, sees immense potential in the digital transformation of the used-car market in the Middle East. As the leading automotive group, Al-Futtaim Automotive aims to bring its regional scale and expertise into the new venture, with the hope that many other leading automotive companies will join in and enable the UAE’s digitalisation efforts towards creating a more organised, progressive and world-class business ecosystem, especially within the context of the used-car market which currently seems very unorganised.
“This collaboration is both strategic and synergistic,” said Peter Grøftehauge, CEO of Autorola A/S. “As one of the world’s most recognised and widely respected automotive brands and the go-to market partner for expansion in the Middle East, Al-Futtaim Automotive brings credibility, knowledge of the local market and regulations, as well as the proof of concept and operations. We bring the end-to-end digital solution, the technological expertise, the wider pool of buyers with higher bid volumes, convenience for sellers, and transparency and traceability. Together, we’re tapping into a whole new business ecosystem.”
Paul Willis, President of Al-Futtaim Automotive, commented: “This venture is a vital component of our growth strategy, and a historic first for our company to enter into the software business. Autorola is a leader in this field and their complete end-to-end digital solutions allows us to serve a wider B2B customer base through a modern and digitised customer journey. Using Al-Futtaim as a test-bed in the region, this independent and impartial new tech company will change the face of vehicle remarketing in the UAE and the wider region for all prospects.”
Autorola MENA is slated to start in the UAE and expand quickly to other countries in the region. The platform is built to cater to all car brands and corporations, right from the inception, with all client data being kept secured and protected on AWS servers and treated as highly confidential.
