We have asked 7 short questions regarding the summary of the past year and market trends to representatives of automotive spare parts manufacturers and distributors. Below we are presenting and interview with Krzysztof Soszyński, Deputy President of Inter Cars SA.
The most important event of 2017 on Polish and International market of spare parts and repairs is...
In Poland: taking over shares in GAU PL by Alliance Automotive Group, acquisition of AD PL by LKQ Europe, record sales of new cars, another record sales of the Inter Cars Capital Group, and also dynamic development of distribution companies in Poland, opening the ILS European Logistics and Development Centre in Zakroczym and development of logistics-warehouse base of other distributors. I would just like to add Polish companies have stronger and stronger position in international purchase groups (ATR, TEMOT, NEXUS) and taking over the Feu Vert chain by Norauto Polska. Worth mentioning is also the fact that Inter Cars Group became a part of group of companies which create the stock exchange index RESPECT.
In Europe: strong consolidation „moves”, taking over of AAG by GPC, taking over of Stahlgruber by LKQ, Europarts with a new shareholder Alpha Private Equity Funds, taking over ATU by Mobiviagroupe. It is worth noticing that in Europe, ten biggest distributors have no more than 10% of share in the aftermarket (according to estimates). In our opinion the consolidation process has just started, so we should expect further information about mergers and takeovers.
Mergers and takeovers on the market of distribution and production of automotive spare parts in Europe in 2017 shall cause…
… changes in balance of forces on Polish and also on European market. The problems may apply to companies which do not have their vision of development prepared in details, have a limited access to capital, problems with succession and which are not interesting for potential investors. The fact of liquidation bankruptcy of Fota company confirms that the industry is a subject to constant changes.
The greatest challenge for your Company for 2018 is...
… optimization of operations, mainly in logistics, based on existing and newly created logistics centres. Our plan is opening Regional Distribution Centres (RDC) in Sofia and in Prague. Additionally we are planning to open a few dozens of new branches, widening already extensive distribution chain. We have also started implementation process of a new sales application based on SAP Hybris integrating all current sales solutions and systems in all 16 European markets. A great challenge is increasing profitability which is much needed for our dynamic development as well as for development of our Customers.
Another challenge is implementing segment strategy outside Poland. This should provide us dynamic growth of sales, not only in parent segment of passenger cars, but also in other segments, such as heavy goods vehicles, tyres, garage equipment, etc.
In coming years on Polish market we shall notice...
… surely multiple changes, starting with consolidation on the level of distribution of spare parts, through development of new sales channels, ending with the need of continuous investment in new technologies.
In the next few years independent garages should…
… associate in chain garages, improve standard of offered services, train the staff, invest in new repair technologies. In order to make it possible, increasing prices for offered services is needed.
The biggest influence on the spare parts market shall have…
… surely legislation on the level of Europe (e.g. infotainment) and domestic (e.g. regulation on electro-mobility), but the effects of those changes will be visible in the industry in a few years. Current problem surely is and will be lack of qualified employees and access to technical data of vehicles. It is also not of no consequence that the number of fleet vehicles shall be growing and also chains working on the basis of car sharing.
Product/product group/concept/service, which shall have most of our attention in 2018 is…
Our main and most important task is continuation of the long-term strategy, i.e. development of distribution chain from the Baltic See to the Balkans and reaching PLN 10 bn income in 2020.
source: motofocus.pl
19.01.2018