The Growth of Online Car Retailing in Europe

The e-commerce landscape continues to expand globally, and the online car retailing sector in Europe is experiencing significant growth as a result. With the increasing trend of pre-purchase online browsing, consumers are turning to digital platforms for their automotive needs. This shift has led to the success of popular classified giants like AutoTrader in the UK, which has observed a substantial increase in revenue in recent years. AutoTrader’s average monthly revenue in 2022 was reported as 2,210 British pounds, allowing the company to offer improved services to retailers.

While AutoTrader has achieved notable success, other UK-based players, such as Cazoo, have also sought to expand into other regional markets with varying degrees of success. Cazoo, a car retail startup focused on providing a seamless e-commerce experience, made headlines after going public in 2021 and made moves to acquire Spanish Swipcar and Italian BrumBrum, before eventually selling them in 2022. Germany-based Auto1 has also positioned itself as a major automotive marketplace operating across 30 European countries, connecting vehicle buyers and sellers.

In France, Aramis Group has emerged as a key player in the automotive marketplace, particularly in its core market of France. The company achieved nearly 1.8 billion euros in revenue in the financial year 2022, underscoring the strength of the online automotive market in the region.

The sale of car parts and accessories has also experienced significant growth in the online market, with companies like German-based Autodoc ranking among the top car parts and tires online stores in several European countries. While online shopping for car parts in Europe still lags behind usage rates in the US, it is becoming an increasingly ingrained habit among European consumers. A 2022 survey revealed that 18 percent of users in Germany, the Netherlands, and Denmark reported buying automotive spare parts or accessories online. Additionally, a poll conducted in Italy showed a rising trend in car equipment purchases on e-commerce sites since 2016.

The growth of online car retailing in Europe is evident, with a shift in customer behaviour and an increasing demand for e-commerce experiences. The success of companies like AutoTrader, along with the expansion efforts of players like Cazoo and Auto1, illustrates the potential for continued growth in the online automotive market. As e-commerce continues to thrive, the future appears promising for the automotive industry in Europe.