Why CarOnSale is focusing on e-cars despite falling sales figures

Overcoming challenges and driving growth in the European e-car sector

The current situation: e-car market trends and challenges in Europe

The European electric vehicle (EV) market is at a crucial juncture. Despite a steady increase in electric car registrations in recent years, the industry faces a number of complex challenges that raise questions about its long-term development. The registration figures show a differentiated dynamic: while some countries continue to record moderate growth, registrations are stagnating in other regions.

Difficulties in European e-car sales in 2024

A key challenge for the growth of the electric car market in Europe is the recent decline in consumer confidence, as shown by the year-on-year fall in new electric car registrations in Germany (-36.8%)¹ and Norway (-3.5%)² in July. The sales figures for electric cars in some countries indicate a slowdown due to various influencing factors. With the increase in new car production and the establishment of more electric vehicles on the market, concerns have grown about the rapid depreciation caused by the high pace of innovation.

Uncertainty about the future value development of electric vehicles has increased, especially among dealers, who are primarily dependent on stable resale values. This uncertainty is compounded by fluctuating energy prices and varying levels of charging infrastructure across regions, making it difficult for dealers to predict future demand and market trends. This caution is reflected in the fluctuating sales figures for e-cars, leading to increasing caution in the market.

Lack of demand and price pressure in the used car market for electric vehicles

Reluctance is particularly pronounced in the B2B market. The used car markets are experiencing restrained demand as dealers are uncertain about the future profitability and resale value of certain models. These uncertainties have led to an oversupply of new vehicles, which in turn is causing price pressure in the used car segment. The share of e-cars varies greatly between European countries, adding to the complexity of the market. This reluctance has led to a surplus of new vehicles and consequently to falling prices on the used car market, as can be seen from the year-on-year change in the average price of used electric cars in Germany (-12.8%)³ in July.

Overcoming the challenges: CarOnSales strategic approach to e-car sales solutions

At CarOnSale, we are aware of these industry-specific challenges and have developed a clear, strategic approach to address them. Our solutions are based on a combination of technological innovation, targeted market entry and excellent fulfillment services. Our goal is to strengthen dealer confidence while promoting sustainable growth in the e-car sector.

Technological innovation: building trust in the digital marketplace for e-cars

CarOnSale has made significant investments in advanced battery diagnostics to provide detailed and reliable insights into the condition and performance of electric vehicle batteries. This innovation creates the necessary transparency that is essential for B2B decision-making. With our technology, dealers can make informed decisions and significantly minimize risks when buying used EVs, which helps to stabilize EV sales.

In addition, we utilize a market pricing algorithm that uses real-time data to determine the most accurate and competitive prices for electric vehicles. This algorithm takes into account a variety of variables, including current market trends, regional demand fluctuations, the condition of the vehicle and historical sales data. To further boost confidence, CarOnSale offers a guaranteed price. This ensures that dealers receive a minimum price for their vehicle, regardless of market fluctuations. By combining our market price algorithm with this guaranteed price, we minimize financial risks and create a safer transaction environment for our customers, enabling us to provide the best possible customer experience in the electric vehicle market.

Cross-border presence: utilizing the e-car market dynamics in Europe

Our strategic presence in several European markets allows us to make targeted use of regional differences in demand. The different developments in Germany and the Nordic countries in particular offer price arbitrage opportunities, which we consistently exploit. Our activities in the Nordic countries and the Netherlands enable us to manage supply and demand efficiently, which ensures optimal pricing and a continuous flow of transactions.

First-class fulfillment for optimized e-car transactions

In addition to our technological and operational initiatives, we rely on first-class fulfillment services that are specifically tailored to the requirements of the e-car market. Our experienced team of more than 50 certified vehicle inspectors ensures that every vehicle meets the highest quality standards. This rigorous inspection is central to ensuring market integrity and the trust of our business partners.

Unrivaled sales and customer base

CarOnSale's market leadership is underlined by our impressive sales figures and extensive customer base. With the recent acquisition of AlphaOnline, the leading software provider for used car process management in Germany, we serve a huge network of 2,500 licensed dealer roofs and five OEM customers. In 2024, we will sell around 100,000 cars, our platform has 40,000 active users and records over one million used cars annually, consolidating our dominance in the German dealer segment. Around 50% of the 100 largest car dealership groups are our customers.

Conclusion: growth potential in the e-car sector

The used car market typically lags behind the new car market by 3-5 years. Given the low production of electric vehicles in recent years, the availability of used electric vehicles in significant quantities will be delayed. It is expected to take around 10 years before significant volumes of used electric vehicles are available for auction. Despite the current challenges in the European electric vehicle market, CarOnSale remains firmly committed to e-cars. Despite short-term uncertainties, the European EV market holds significant long-term potential. Our strategic approach, which combines technological innovation and cross-border market expertise, positions us as a pioneer in the sustainable automotive industry.

Our commitment to the further development of this market is reflected in our consistent focus on sustainable growth and innovation. As investments in electric vehicles continue to gain momentum, CarOnSale presents itself as a reliable partner that is taking a leading role in the European e-car sector through strategic market adjustments and technological progress.

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Sources:

¹Germany KBA July 2024: https://www.kba.de/DE/Statistik/Fahrzeuge/Neuzulassungen/MonatlicheNeuzulassungen/monatl_neuzulassungen_node.html

² Norway OFV July 2024: https://ofv.no/bilsalget/bilsalget-i-juli-2024

Autoscout AGPI July 2024: https://www.autoscout24.de/cms-content-assets/7b5sRC5ODJy3mLPOcrWwAY-0ab40f1ef308d616a4e62b1233d80d27-Grafik_AGPI_Juli_2024.pdf