Information on the Target

The Mobility Trader Holding GmbH is the parent company of the used car platform, heycar. Founded in Berlin in 2017, heycar has quickly established itself as a leading digital sales partner in the used car market. The platform currently offers over 450,000 vehicles in Germany and has successfully launched in the UK, where it boasts a selection of more than 160,000 vehicles within just a few months of operation.

This strong performance underscores the significant potential within the used car sales sector, especially as consumer demand continues to shift towards digital solutions. With the new company structure, Mobility Trader Holding GmbH is well-positioned for further investments at both holding and local market levels, thereby enhancing its competitive edge.

Industry Overview in Germany

The used car market in Germany has seen transformative changes over the last few years, particularly due to the increasing importance of online platforms. Many consumers now prefer the convenience of purchasing vehicles online, leading to innovative offerings from various digital platforms that facilitate transactions between dealers and consumers.

As of 2020, the used car market in Germany is characterized by competitive pricing and a diverse vehicle selection. Digital platforms, such as heycar, provide value-add features including quality assurance and transparent vehicle history, which attract a new generation of digital-savvy buyers looking for reliable options.

Moreover, the growth of e-commerce has fostered new customer interactions and expectations. With increasing interest in sustainability and efficiency, more consumers are exploring pre-owned vehicles as eco-friendly alternatives to new cars. This trend enhances the growth prospects for online platforms specializing in used vehicles.

Germany's strong automotive sector provides a solid foundation for the growth of used car sales online. Volkswagen, as a leading player in the industry, recognizes this shift and aims to leverage the existing infrastructure to capture market share in the evolving landscape of car sales.

The Rationale Behind the Deal

The investment by Volkswagen Financial Services into Mobility Trader Holding GmbH highlights the strategic importance and growth potential of the heycar business model. This partnership not only strengthens Volkswagen’s position within the used car market but also enhances its digital capabilities and access to a rapidly expanding online customer base.

The capital injection serves as a foundation for the platform's intended international expansion, allowing heycar to further develop its offerings and enhance its market presence across Europe.

Information About the Investor

Volkswagen Financial Services is a division of the Volkswagen AG group, focusing on various financial services including dealer and customer financing, leasing, banking, and mobility offerings. As of the end of 2018, the division employed over 16,200 staff globally, signifying its substantial role within the organization.

Volkswagen Financial Services is critical in supporting Volkswagen AG's automotive ambitions by providing innovative financial solutions aimed at enhancing dealer and consumer experiences, thus driving sales and increasing the company’s overall market share.

View of Dealert

This investment by Volkswagen into Mobility Trader Holding GmbH appears to be a strategic decision with considerable merit. The used car market is rapidly evolving towards digital platforms, and heycar's established presence in both Germany and the UK positions it well within this transformation. By leveraging Volkswagen's industry expertise and financial capabilities, heycar can further innovate its offerings to meet consumer demands.

Moreover, the growing trend of online vehicle shopping aligns with Volkswagen's broader strategy to enhance its digital services across all automotive sectors. This deal not only enables heycar to expand its operations but also solidifies Volkswagen's footing in the competitive used car landscape.

Furthermore, as consumers continue to prioritize convenience and transparency in their purchasing decisions, the successful execution of this investment may serve to enhance brand loyalty towards Volkswagen and its affiliated services. Overall, it is likely to yield positive returns, making it a sound investment within the context of digital transformation in the automotive industry.

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