Kesko Car Trade Division President: Profitability is central
Johanna Ali, Division President of Kesko's Car Trade division, emphasized that profitability is central to all areas of the business. The division is focusing on organic growth and integrating digital services with physical locations.
Johanna Ali, who has led Kesko's Car Trade division since April 2024, discussed the company's strategy and competitive advantages in the automotive sector in a recent interview. K-Auto's business model encompasses new cars, used cars, and services, including maintenance, repairs, and an EV charging network.
Ali highlighted K-Auto's balanced portfolio spanning the entire automotive value chain as a key strength. This diversified approach helps adapt to market fluctuations, as the service business, for example, is less susceptible to economic downturns than new car sales. Kesko has also successfully increased its market share in the used car segment, benefiting from the K Group's trusted brand reputation.
The division prioritizes profitability over market share, with all three business areas reporting profits. Ali attributed this strong financial performance to skilled staff, improved operational efficiency stemming from a strategic transformation program, and significant investments in digitalization.
"We believe the winning concept in car trade going forward will be the seamless combination of physical locations and digital services. We will be present in both, meeting the customer where they choose," Ali stated. Looking ahead, K-Auto aims for organic growth across all business segments, though potential acquisitions will be considered. The greatest growth potential is currently seen in the used car market. The collaboration with Volkswagen Group is set to continue.