Announcing the launch of the new joint-venture, Autorola MENA holding limited

The UAE has a fad for cars that a few other countries can match. It is the habitat of the most exclusive, sassy, fast and luxurious cars. The automobile community of the region is proliferating with state-of-the-art car meets, exhibitions and events happening. The arena’s pre-owned car market too, seems a promising business opportunity for the local dwellers and expatriates as it offers a volume of trade, prolific to their success. However, this industry is a bit organised with lack of clarity rampant of aspects such as price transparency, integration of B2B commerce, concise and accurate documentation, transfer of ownership and inventory control among others.

That said, all this is set to change with the foray of Autorola, a digital e-commerce podium that aims to eliminate all the previously mentioned pain points in purchasing a used car in association with the Al-Futtaim conglomerate. The joint-venture will simplify lives of B2B resellers of used cars with measures such as consistent and precise pricing, automation in operations and auctions that shall be striking 24/7. The platform will bolster a method of functioning which will allow better trade-in ratios, stocks that have better turnover and a scintillating overall customer experience. 

Such revisions will play an indispensable role in leveraging the industry from the existing USD 14-billion to a prognost of USD 20.5-billion by 2025 with a forecasted CAGR of 10-12%. Other measures which will be introduced in the wake of the partnership are providing vehicle inspection, personalisation of the platform to customer requirement and modules for lineup parading, ordering and repairs, booking, evaluations and the entire process of remarketing which entails transfer, warehousing, insurance, cleaning and part efficiency check, valuation, a virtual marketplace to exchange cars, auction selection and handling and payment. The portal also features a “Fleet Chat” section which makes redundant, the Sisyphean tasks of disseminating emails, SMS messages and phone calls with used car dealers and other facilitators.

The brainchild of Autorola and Al Futtaim group, Autorola MENA’s parent company Autorola A/S is one of the most renowned brands providing online vehicle remarketing and automotive IT applications, having already penetrated 19 countries. In the previous year, it registered 55,000 active dealers and 815,000 cars auctioned in 2021. Its existing clientele chiefly includes banks, rental dealers and leasing dealers among others.

Al-Futtaim collaborates with the group as it sees a chunky potential in the digital transformation of the pre-owned car market in the Middle East. It will bring its years of experience in the Middle East and understanding of the regional market to ensure the joint-venture scales to new heights with hopes that other automobile marques will play a pivotal role towards this step in their errand. 

“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.”

The first market in the UAE where the venture will commence operating is the UAE and that will be followed by increasing its footprint to other nations of the territory. The platform includes all car brands, intermediaries and professionals who are indulged in the used car trading process. It ensures paramount safety of the users as their data will be protected by AWS servers treating it as stealthy.