Listed auto trader AutoWallis has concluded a cooperation agreement with the founder of Western Hungary’s automotive retailer, the Iniciál Group, which is expected to reach a turnover of HUF 19.3 billion this year, according to a press release sent to the Budapest Business Journal.
AutoWallis says that the main purpose of the agreement is to jointly increase their presence in the region, in the field of mobility services, via the development of new sites and dealerships.
One important strategic goal of AutoWallisʼ strategy of doubling its revenue by 2024 via organic growth and acquisitions is to increase the number of its dealerships in the Hungarian market together with the proportion of its services within the total revenue.
The company says that this would be supported by the cooperation agreement realized between AutoWallis and Zsolt Taródy, the founder of the Iniciál Group. Iniciál is involved in the sales and servicing of eight brands (Dacia, Kia, Nissan, Opel, Peugeot, Renault, Suzuki and Toyota) at four sites (Győr, Mosonmagyaróvár, Sopron, and Szombathely).
Regarding the agreement, Taródy emphasized that Iniciál has grown into a corporate group meeting all importer requirements in its region, and has managed to increase its turnover above the industry average in the past two years.
The development and the growth objectives of the company are well reflected in that in November they joined the ELITE business development program implemented by the London Stock Exchange Group in cooperation with the Budapest Stock Exchange. The parties are planning on completing the detailed elaboration of their cooperation in the first half of 2020.
Gábor Ormosy, CEO of AutoWallis explained that the company is exploring the possibilities of an ideal construction for starting the distribution of the brands represented – and, in some cases, recently acquired – by the company in the region covered by Iniciál. It is no secret that AutoWallis plans to appear in the area of fleet brands as well, besides the premium brand market, and Iniciál has considerable experience in this field.