New joint venture Autorola MENA launched to transform UAE’s used-car market

The pre-owned automobile industry in the UAE, one of the most important in the world, is now valued at US $14 billion. It is projected to grow to US $20.5 billion by 2025 but currently faces critical issues such as inconsistent pricing, no vehicle inspection, and decentralised remarketing processes, among many others. However, two stalwart firms in the industry, Autorola A/S and Al-Futtaim Automotive have decided to come together to launch Autorola Middle East & North Africa (MENA) Holding Limited.

Autorola MENA, a joint venture, gets formed to ‘reinvent the region’s B2B used-car market’ by creating a fully digital remarketing experience. This end-to-end digital platform will simplify every step of the remarketing process, with transparent pricing, automated workflows, and auctions taking place 24/7. The digital approach will reportedly result in better trade-in ratios, stock that moves faster, and improved customer experience for its target market comprising owners of used car fleets and B2B clientele.

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Autorola MENA will boast a customer-focussed yet customisable digital platform with modules facilitating fleet monitoring, ordering and repairs, booking and appraisals. Various aspects of the remarketing process, such as transfer, storage, insurance, cleaning and inspection, and payment, will also be covered and improved under Autorola MENA’s digital interface. The website will further allow document sharing and integrate a “Fleet Chat” platform, rendering emails, SMS messages and phone calls with vendors and other partners unnecessary.

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This venture sees two firms come together: a renowned automotive distributor in the UAE and a global leader in online vehicle remarketing and automotive IT solutions. Autorola A/S conforms to the latter, boasting a global platform that served more than 55,000 active dealers with 815,000 cars auctioned in 2021. Al-Futtaim Automotive constitutes the former and is a leader in UAE’s automotive circle. With this venture, this automotive group aims to enable the UAE’s digitalisation efforts towards creating a more organised business ecosystem, especially within the context of the used-car market.

“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.”